The new Chapter XI 'Collection of the tax arrears of legal entities” has been added to the Law "On Taxes and Fees". Board members are responsible for the tax debts of the company, taking into account the folowing five criteria:
1) If the amount of tax in arrears is equivalent to 50 minimum wages (EUR 18 000);
2) That the decision to recover tax arrears has been sent to the entity;
3) After an accumulation of tax arrears any assets have been disposed of to the person concerned;
4) A document has been made stating the impossibility of tax debt repayment;
5) The absence of a legal person's application for insolvency proceedings.
Having established the following five criteria, SRS have the right to warn the legal person and board member about the beginning of the process for recovery of tax arrears within a three month period from the date when the document was issued stating the impossibility to repay the tax debt.
If the entity has a number of Board members, they are considered to be jointly liable for the overdue tax payments of a legal entity.
