THE SUPREME COURT DENIED THE FEDERAL TAX SERVICE THE STATUS OF A SECURED CREDITOR IN BANKRUPTCY

The Supreme Court of the Russian Federation ruled that the seizure of property for tax claims does not entitle the Federal Tax Service (FTS) as a collateral creditor in a bankruptcy case. However, the tax authorities will be able to secure a pledge of property in their favor if it is specified in the Insolvency Law.

The reason for this decision of the Supreme Court was the bankruptcy of Inzensky Woodworking Plant Production Company LLC. The Federal Tax Service demanded to recognize its claims in the amount of 109.75 million rubles secured by collateral, referring to the seizure of real estate and equipment of the debtor company. However, the bankruptcy trustee and then one of the creditors, represented by Sberbank, challenged the claim.

The Supreme Court of the Russian Federation, in turn, stressed that the seizure of property does not give the tax authorities priority to repay the debt in bankruptcy.

Statistics, according to the Unified Federal Register of Bankruptcy Information for the first half of 2025, show that the claims of secured creditors are satisfied by 21.76%, while those of unsecured creditors are satisfied by only 8.66%.

 

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