RUSSIAN GOVERNMENT DISCUSSING AUTOMATIC RECOVERY OF DEBTS FROM BUSINESS

At a recent meeting with the Deputy Chief of Staff of the Cabinet of Ministers, Valery Sidorenko, the issue of introduction of automatic debt recovery from entrepreneurs was discussed, reports Izvestia. The new rule of law may find its application when concluding government contracts.

It is proposed to introduce the possibility of automatic collection of debts to the budget, if there are any, from a company that has entered into a government contract.

The withdrawal of a certain amount may occur immediately after payment under the contract in favor of the contractor.

So far, the government has instructed the Federal Tax Service and the Ministry of Finance to consider the feasibility of making such changes.

Business, on the other hand, advocates that entrepreneurs should have the opportunity to feel their security. It was noted that the introduction of such a rule may lead to a situation when participants who have no intention of fulfilling the concluded agreements will come to the market of government contracts.

The government specified that the Ministry of Finance and the Federal Tax Service should work out the initiative and prepare an action plan for its implementation. The Ministry of Finance has already noted that the legislation on public procurement does not provide for the conclusion of a contract with a person who has debts to the budget. In this regard, the introduction of a new rule of law on automatic debt recovery is impractical.