Often, subject to certain circumstances may have difficulty paying taxes. Tax deferral is a way to gain time, if necessary, in connection with a difficult life situation, which in one way or another affects the individual’s ability to be a decent taxpayer.
Basic concept
The tax deferral is a changed time period for making a payment, which is granted for a period of one month to three years. A prerequisite is the obligation of the taxpayer to pay, in addition to the amount of debt, and timely tax. Payment can be phased or one-time. However, tax deferral is a little-known phenomenon with which a small number of citizens are familiar. The provision of such an opportunity is listed in the Tax Code of the Russian Federation, and cases of deferred payment of taxes are considered by the relevant types of state authorities. The procedure for considering the provision of such services to the taxpayer is individual in nature, therefore it is almost impossible to name specific ways to obtain the right to defer payment.
Decision Making Procedure
The procedure for making decisions on granting the right to defer payment of taxes is a complex and multicomponent task. It is connected with the clause on the grounds necessary to obtain the right to installment or deferral of payment of taxes, which will be discussed in detail below. If we talk about the general situation and the order, it is important to know that to begin with, the subject must contact the relevant authorized bodies and find out the list of documents and the reasons necessary to obtain this type of right. After this, you need to collect the necessary documentation, provide evidence of the existence of a reason that caused the subject to be unable to pay tax. If there is no substantial evidence that is provided in authorized bodies in accordance with legislative documents, then there is simply no chance of obtaining the right to defer or installment payments. With the collected package of documents and a statement, you must again contact the authorities responsible for making such decisions and submit your request for consideration. After that, the application of the subject will be considered in various instances and authorities, which will determine within a month whether they will provide or not grant the right to installments or deferred payment of taxes.
Types of tax deferrals
There are two main types of changes in the period in which it is necessary to pay tax. The first type is the payment of installment taxes, and the second is a deferment. They differ from each other in that:
- installment plan is a phased partial refund of tax debt;
- deferral is the transfer of the moment of payment in full.
Installment and deferred tax payments
Deferral and installment payment of taxes are two concepts that should be considered together. They are similar in nature and have some general points. The provision of a tax deferral requires the existence of grounds of the same nature as those that must be observed if the subject needs an installment plan. It is important to know that deferment and installment plan can be provided both for one tax, and for several. To obtain the right to defer or installment payments of taxes, you must have good reason and the ability to prove the need to obtain these rights. Also, in order to use the right, it is necessary to submit a corresponding application for deferment of payment of taxes to the authorities that are responsible for this.
The request is accepted by the relevant governing bodies in agreement with extrabudgetary forms of bodies. The application is considered within a month after its receipt from the interested entity.
In some cases, the authorized bodies are not entitled to refuse to provide an opportunity for a deferral or installment plan of tax payment. Such cases are in the nature of force majeure, independent of the subject, and can have a different look, for example, a natural disaster or a man-made disaster. After making a decision on granting the right to a deferral or installment plan for payment of taxes, interest will be charged daily. The penalty will be paid by the taxpayer during the entire term of the agreement.
Statement
An application for a tax deferral must be made in writing. It must be indicated in it:
- total taxes, amount of fees;
- penal (financial) sanctions (fines);
- the amount of the penalty that the taxpayer undertakes to pay, the amount of the penalty that he asks to install;
- terms required for payment.
Separately, you need to specify the amount of funds to be paid, the amount of debt, the period for payment, which has already expired.
The following must be attached to the application:
- analysis of the financial condition of the subject;
- a list of evidence and evidence to make sure that there is a threat of tax evasion or the possibility of its occurrence;
- a schedule in accordance with which the debt will be repaid;
- debtor income forecasts that can guarantee the fulfillment of the debt repayment schedule.
Grounds for granting tax deferral rights
As mentioned earlier, a tax deferral is a change in the time interval required to pay taxes for certain reasons. To obtain such a right, serious, specific and substantial grounds are necessary.
Below is a list of the main types of grounds that may be valid in the event of a need to obtain installments or deferred payment of taxes.
An individual is in a situation that does not allow making a one-time tax payment.
When making a lump sum of tax debt, an individual will expect bankruptcy.
Occurrence of circumstances that are not dependent on the subject, but are irresistible and cause significant damage to property (man-made disaster or natural disaster).
Seasonal nature for the sale or (and) production of goods used by the taxpayer for profit. The Government approves a special list of varieties of activities and industries to which this clause applies.
Other types of grounds provided for in the legislation of the Russian Federation in relation to taxes
Features of the provisions of the Tax Code of the Russian Federation
The granting of a deferment or installment plan for the payment of tax may be effected due to the aforementioned grounds, but it is worth considering the last paragraph in more detail. The list of reasons that could serve as the basis for granting the right to installment or deferral of payment of tax, which is in the Tax Code of the Russian Federation, is quite capacious and non-exhaustive. It may have additional items in relation to taxpayers. Some of the additions appear in the Customs Code of the Russian Federation and may apply to perishable goods that are imported into the Russian Federation; goods that are part of the execution of international treaties and many others.
Deferred federal taxes
Deferral or installment plan for the payment of federal taxes has two types of term. The first option for a period of one to three years is considered with the participation of the dominant tax authorities of the Russian Federation. The second option is a period not exceeding five years.
Deferral for the second option is possible for one or more federal taxes, including penalties for them and all accrued interest. A federal tax deferral may be granted if the organization’s debt at the time of application is more than ten billion rubles. In this case, the condition must be met that timely tax payment will create the likelihood of an economic and social threat.
Deferral of Fees
Fees may also be deferred. Deferral and installment payment of taxes and fees are indicated in the Tax Code of the Russian Federation. Speaking specifically about installments and deferred fees, it is important to know that the state duty is also considered a fee. Because of this, the provisions of Chapter 9 of the Tax Code regarding changes in the terms required to recover debt on taxes and fees apply to the state duty. Features on the payment of state duties are determined by the chapter of the Tax Code 25.3.
Change in the time needed to pay taxes
Changing the tax payment deadline (deferment, installment plan) is an important aspect in the life of a taxpayer. The use of this right allows you to find a way out of difficult or even hopeless life situations. The conditions for such peculiar tax benefits, which are subject to the provisions of the Tax Code of the Russian Federation, vary depending on the needs of the entity interested in obtaining the right to change the deadline for making a mandatory payment. After submitting a request to grant such rights, reviewing this application and accepting it, if any, a repeated change of conditions becomes unlikely, but still possible only due to serious circumstances. In another case, you can wait for the expiration of the agreed period and try to agree again. This is possible provided that the taxpayer has paid the previous debt.
conclusions
Having considered the above aspects, paragraphs and characteristics of the special right to installment or deferral of tax payment, it is important to understand that it takes a lot of work to get this opportunity. Be sure to have a reason that meets the requirements of the Tax Code. It is important to prepare a complete list of necessary documents, you need to be prepared for the fact that they will be specified in the relevant authorities. It is important to follow the instructions of the authorities that will assist you in obtaining the opportunity to defer tax payments.