The Tax Service extended the ban for blocking current accounts

The Tax Service has extended the ban on blocking business accounts with arrears for one month. The moratorium is valid until July 1, after which debtors will be required to repay the tax debt within two weeks.

The ban on blocking business accounts with debts to the budget was introduced by an order dated March 10, with a validity period until June 1. Now its validity period is extended by one month.

The order has its exceptions, in particular: the moratorium does not apply to unscrupulous businesses that can hide their assets using the ban. In this case, it is possible to block the account, but only after approval by a higher tax authority, or by a deputy of the tax inspectorate.

Account blocking is possible if inspectors suspect that the business intends to withdraw or hide assets for non-payment of taxes. Tax statistics show that exceptions affected only one company out of a thousand.

The tax inspectorate noted a positive trend in the financial situation of the business and for this reason they see no reason to extend the moratorium on blocking accounts after July 01, 2022.