A debtor can alienate property that is in a tax lien only with the consent of the controlling body (item 92.1 of Art. 92 of the Tax Code of Ukraine (hereinafter – Tax Code). What responsibility is provided for the debtor who decides to alienate such property without obtaining the consent of the controlling authority?
The Main Department of the State Tax Service in Kyiv has reminded that in case of alienation or renting (leasing) of property, which is in the pledge, the taxpayer, with the consent of the controlling body, is obliged to replace it with other property of the same or greater value. Reduction of the value of the replaced property is allowed only with the consent of the controlling authority, provided that the tax debt is partially repaid (item 92.2 of Art. 92 of the Tax Code).
In the case of transactions with property, which is in the pledge, without the prior consent of the supervisory authority, the taxpayer is responsible in accordance with the law, namely:
- according to item 124.1 of Art. 124 of the Tax Code the alienation of property that is in the tax lien by the taxpayer without the prior consent of the controlling body, if the Tax Code provides for such consent, entails a fine of the value of the alienated property;
- according to Art. 94 of the Tax Code, if the taxpayer violates the rules of alienation of property, which is in the tax lien, the controlling body may apply administrative seizure of the property;
- according to Art. 388 of the Criminal Code of Ukraine the offender is subject to criminal liability for unlawful acts with pledged property or property described.
