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2. If NAV had notified the taxpayer of execution of social contribution or of overdue itemized lump sum tax obligations (meaning collections from their bank account), does the Decree suspend the execution process?
Government Decree No. 57/2020 (III.23) regulates the suspension of execution (collection) procedures. As per Section (1) of Article 9 of named decree, execution proceedings ordered pursuant to Act No CLIII of 2017 on executions to be carried out by the tax authority (hereinafter referred to as: the Executions Act) shall be suspended from the date the Decree entered into force until 15 days following the end of the state of emergency. The only exceptions to the above are the proceedings executed under subsections 57 and 57/B of the Executions Act and execution of fines imposed on businesses for failure to comply with mandatory pandemic-related measures prescribed in relation to the state of emergency.
In addition, Section (2) of Article 9 of the Decree prescribes that NAV shall act in compliance with Sections (2) and (3) of Article16 of the Executions Act in cases suspended as per Section (1).
Section (2) of Article 16 of the Executions Act regulates how the suspension of the execution procedure affects collections. Accordingly, if the financial institution managing the payment account did not perform the collection up to the starting date of the suspension period, NAV shall take immediate measures to revoke the collection order. If a financial institution had performed the collection and transferred the amount to NAV during the suspension period, the tax authority shall remit the amount to the taxpayer within 8 days of becoming aware of such payment.
Thus, there is no place for collections during the suspension of execution procedures under Government Decree No. 57/2020 (III.23).
Source: National Tax and Customs Administration (NAV)
In addition, Section (2) of Article 9 of the Decree prescribes that NAV shall act in compliance with Sections (2) and (3) of Article16 of the Executions Act in cases suspended as per Section (1).
Section (2) of Article 16 of the Executions Act regulates how the suspension of the execution procedure affects collections. Accordingly, if the financial institution managing the payment account did not perform the collection up to the starting date of the suspension period, NAV shall take immediate measures to revoke the collection order. If a financial institution had performed the collection and transferred the amount to NAV during the suspension period, the tax authority shall remit the amount to the taxpayer within 8 days of becoming aware of such payment.
Thus, there is no place for collections during the suspension of execution procedures under Government Decree No. 57/2020 (III.23).
Source: National Tax and Customs Administration (NAV)