Russian newspaper Kommersant reports on court decisions in Russia regarding appeals from Belarusian taxpayers.
In a developing trend, tax authorities from Uzbekistan, Kazakhstan, and Kyrgyzstan have been seeking to recover state duties, losses, or debts under subsidiary liability from individuals, both Belarusian and Russian citizens, through Russian courts. This increase in such cases is attributed to the migration of debtors and their assets to Russia.
One of the notable cases involves the recovery of €8.9 million in debt from the bankrupt Osiptichsky Wagon Plant under subsidiary liability. Belarusian tax authorities are actively tracking debtors' property abroad, including in Russia, and have approached Russian courts at least seven times in the past six months to enforce debt collection decisions.
Russian courts have generally recognized the validity of the claims made by Belarusian tax inspectors. In six out of seven cases, Russian courts, citing bilateral agreements between the countries, satisfied the claims of Belarusian inspectors, recognizing the demands as valid. However, in one case, a Russian arbitration court refused a Belarusian inspector's claim due to the expiration of the three-year deadline for enforcing the decision.
This trend suggests a growing practice of foreign tax authorities using Russian courts to recover debts. Experts note an increase in foreign tax authorities, such as Uzbekistan, Kazakhstan, and Kyrgyzstan, approaching Russian courts to recognize and enforce debt collection decisions.
While Russia is actively reforming its tax debt collection process domestically to enable out-of-court collections directly by tax authorities against individuals, no direct link to Belarusian authorities enforcing debt collection through Russian courts has been established. The European Union's recent escalation of sanctions on Russia and Belarus may create a complex political and economic environment that could influence cross-border legal and financial enforcement actions, but no specifics about Belarusian tax enforcement using Russian courts appear in the sanctions-related information.
The overall trend indicates that Belarusian authorities are eager to reach the assets of debtors whose whereabouts have been traced to Russia. The active tracking of debtors' property abroad by Belarusian tax authorities may also be a contributing factor to the increased use of Russian courts by foreign tax authorities.
Businesses and individuals in the finance industry might be subject to increased scrutiny, as foreign tax authorities, such as those from Uzbekistan, Kazakhstan, and Kyrgyzstan, are increasingly using Russian courts to recover debts. This practice is linked to the migration of debtors and their assets to Russia, a trend that has caught the attention of Belarusian tax authorities, who are actively tracking and enforcing debt collection decisions in Russian courts.
