SETTLEMENT OF TAX DEBTS UPON THE DISSOLUTION OF A LEGAL ENTITY OUTSIDE OF BANKRUPTCY PROCEEDINGS: ISSUES OF LEGAL REGULATION AND LAW ENFORCEMENT

Abstract

Introduction. One of the state’s top priorities in the area of tax policy is to ensure the full and timely collection of taxes and fees into budgets at all levels. The effectiveness of this effort depends to a large extent on proper legal regulation of the mechanisms for settling tax debt, particularly in cases where taxpayers cease operations. Issues related to the repayment of tax debt upon the liquidation of a legal entity outside of bankruptcy proceedings are of particular relevance, since it is precisely at this stage that the need arises to strike a balance between the state’s public interest in filling the budget and the private interests of participants in civil transactions.

Purpose. The purpose of this article is to examine the specifics of the legal regulation of tax debt repayment upon the liquidation of a taxpayer not involving bankruptcy proceedings, to identify problems in the application of the law, and to formulate proposals for improving the current legislation of Ukraine.

Materials and Methods. The methodological basis of the study consists of an analysis of the provisions of national legislation, in particular the Tax Code of Ukraine, the Civil Code of Ukraine, the Law of Ukraine “On State Registration of Legal Entities, Individual Entrepreneurs, and Public Organizations,” as well as other regulatory acts governing the repayment of tax debt by legal entities. In the course of the research, a broad and diverse range of general scientific and specialized legal research methods was employed, including methods of analysis and synthesis, as well as systemic-structural, formal-legal, comparative-legal, and logical-legal methods.

Results. The study revealed conflicts in the application of provisions of the Tax Code of Ukraine and the Civil Code of Ukraine governing the procedure for settling the tax debt of a legal entity undergoing liquidation not related to bankruptcy. It has been established that the lack of proper coordination between the provisions of tax and civil legislation leads to inconsistent judicial practice regarding the sale of a taxpayer’s property subject to a tax lien and the procedure for satisfying the claims of tax authorities. It is argued that the repayment of a legal entity’s tax debt should be carried out by the liquidation commission as part of the liquidation procedure, in compliance with the order of priority for satisfying creditors’ claims established by law; proposals are also formulated to improve the legal regulation of the relevant legal relationships.

Prospects. Prospects for further scientific research lie in developing theoretical and practical foundations for improving the mechanism for repaying the tax debt of legal entities, harmonizing the provisions of the Tax Code of Ukraine and the Civil Code of Ukraine, as well as studying the specifics of enforcing tax liens and the liability of participants in the liquidation procedure in the context of further reform of Ukraine’s tax legislation.