Financial sanctions: basic concepts, accrual procedure, deadlines

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:41

With the development of market relations in the Russian Federation, a fundamentally new system of taxation is being formed. Legislative and other tax regulations adopted over the past few years determine not only the system of tax payments in Russia, the procedure for their calculation and subsequent payment, but also measures related to monitoring compliance with the rules of tax legislation. Control and supervisory structures are being developed and successfully carry out their functions, designed to ensure the order of legality in the field of taxes and fees. In this article, we will consider one of the categories of financial law - sanctions (key concepts, deadlines and accrual procedure).

Concept

Relatively recently, the concept of financial responsibility appeared in the legislation of the Russian Federation. It should be noted that its implementation consists in the use of certain sanctions against the guilty person. When characterizing them as measures of financial responsibility, it is advisable to highlight the following features of financial and legal sanctions:

• Relate to the group of measures of financial responsibility. Costsnote that their use implies an assessment of actions as financial violations and, accordingly, punishment by the state represented by certain authorities.
• Sanctions are of a property-organizational nature, as they are closely related to coercive influence not only on the money of the offender (his property complex), but on the funds that belong to him. In this case, the application of financial sanctions does not necessarily involve the seizure of money from the perpetrator. As a rule, the action here is aimed at limiting the possibility of replenishing the corresponding monetary fund or disposing of its funds.
• The basis for the use of sanctions is the commission of a financial offense, which usually consists in the failure by the guilty person to fulfill one or another monetary obligation that is of a public law nature.
• Articles of financial sanctions can be used both in relation to individuals and organizations, and to public law formations (subjects of the Russian Federation, as well as municipal structures).
• The application of sanctions is based on the method of indisputable debiting of money from the accounts of the offender in banking institutions and other financial institutions.
• Money confiscated from the offender when recovering a financial sanction, one way or another, shall be credited to the state budget of the appropriate level or to the municipal non-budgetary fund. Thus, sanctions can be called one of the sources for the formation of these categories.
• Sanctions are inherent in the nature of restoration of rights. It is implemented withdetermining the consequences of a negative plan for public finances, which are caused by an offense. Here we are talking about the replenishment of municipal as well as state centralized funds by collecting money from the offender.

Category entity

Financial sanctions are nothing more than the use by authorized state authorities and their officials against taxpayers, who may be individuals or legal entities, for committing a tax offense in the manner prescribed by financial, legal and administrative rules state coercion. They are expressed in cash and transferred to the state budget. The main goal here is to ensure state and public financial interests, to compensate for the shortfall in extra-budgetary funds and the state budget, as well as to punish offenders. Thus, the use of financial and legal sanctions entails the onset of certain consequences of a moral and property nature for those responsible for the committed tax violations.

The procedure for imposing sanctions. Full recovery

A taxpayer who has violated tax laws, in cases established by the law in force in the country, is financially liable in one form or another. Thus, the payment of a financial sanction as the entire amount of underestimated or hidden profit (income) or a tax amount for another unrecorded or hidden objecttaxation involves a fine in the amount of a similar amount of cash.

In case of a repeated violation, we will talk about the corresponding amount of the fine, but already in the double amount. In the event that the judicial authorities establish the fact of deliberate understatement or concealment of profits by a court decision or verdict at the suit of a tax authority or a prosecutor, a fine in the amount of five times the amount of the understated or hidden amount of profit will be collected to the federal budget.

10 percent sanction

When considering financial sanctions and their types, it is important to note such a category as a fine of 10% of the tax amount for the last reporting period due to be paid. It immediately precedes a review for each of the following types of offences:

• lack of accounting for taxable objects;
• keeping records of taxable objects in violation of the procedure determined by the current legislation, which entails understatement or concealment of profit for the audited period of time by no less than five percent of the tax amount due for payment for the last reporting period;
• late submission or non-submission to the tax structure of the documentation necessary for the calculation of the subsequent payment of tax.

Collecting a fine of 0.7%

Further, it is advisable to consider financial sanctions in the form of pen alties from the taxpayer in case of delay in tax payment. In this case, we are talking about 0.7% of the outstanding amount of cashfunds for each day of delay in payment. It is important to add that the countdown begins from the established deadline for paying the delayed amount of tax payments, unless the law provides for other sizes of pen alties.

Important to know

According to the legislator, this type of financial sanctions does not release the taxpayer from other liability. Pen alty should be understood as a form of financial responsibility. It is worth noting that it can be collected from the taxpayer, which is a legal entity, in an indisputable manner. Pen alties are charged on delayed tax amounts that have been identified since the established payment period. In the event of recovery of arrears in court, the accrual of pen alties in any case is considered terminated from the date of the decision by the judicial authorities regarding the seizure of the property complex of the arrears.

Other sanctions

It is important to note that today there are other financial sanctions provided for by certain legislative acts. It is primarily about Art. 13 of the Law of the Russian Federation on the fundamentals of the tax system in the Russian Federation. You need to know that citizens and legal entities who are exempt from paying tax, the types of liability provided for by the named article of the law for the corresponding tax payment do not apply.

Due dates

It is important to know that the amounts of taxes accrued in an additional order based on the results of counting checks must be paid ina certain period. If these amounts are accrued during desk audits, then the accrual of interest occurs after a 10-day period from the date set for submitting a report to the tax authority. If the payment deadline coincides with a holiday or weekend, the pen alty is calculated starting from the second working day or after the holiday or weekend.

Day of payment

The day of payment of financial sanctions in the Russian Federation is usually considered:

• Day of depositing money to the relevant banking institution or other financial and credit organization in case of payment in cash.
• The day of depositing money to the post office or to a banking organization (other financial and credit structure) when transferring funds by mail or through a bank (another financial and credit institution).
• The day a banking structure (financial and credit institution) writes off a payment directly from the payer's account, regardless of the time the amount is credited to the corresponding account if it is transferred from the payer's account in a banking structure (another credit institution).

Examples of sanctions

The following situations can also serve as examples of sanctions:

• Collection of profits to the state budget of the federal level from banking institutions and other credit structures in case of delay in the execution of taxpayer instructions related to the transfer of tax payments to the budget and the usethose amounts of taxes that are not listed as credit resources in accordance with Part 3 of Art. 15 of the law on the fundamentals of the tax system in the Russian Federation.
• Imposition of a pen alty in the amount of 10 percent of the tax amount to be collected on institutions, enterprises and organizations in case of violation of the established procedure related to the transfer of income tax from citizens.

When else do financial liability measures apply?

Measures of responsibility are used in case of non-compliance with the conditions of activities with cash, as well as the procedure in terms of conducting cash operations on the territory of the Russian Federation by institutions, organizations, enterprises, as well as individuals who carry out entrepreneurial activities as individual entrepreneurs, without legal entity formation:

• For the implementation of settlement transactions in cash with other enterprises, organizations and institutions in excess of the established maximum amounts. We are talking about a fine in the double amount of the payment made.
• For incomplete posting or non-posting at all to the cash desk. This provides for a pen alty of three times the amount of unreceived cash.
• For non-compliance with the current procedure for storing free money, as well as for the accumulation of cash at the box office in excess of the limits established by the current procedure. In this case, a fine of three times the amount of the revealed cash in excess of the limit is assumed.

Responsible Persons

It is important to note that among the financialliability includes legal entities (sometimes their branches), individual entrepreneurs and individuals who are considered tax payers. In relation to the latter, certain liability measures are applied in accordance with the legislative acts regulating the procedure for their payment.

Final part

So, the basic concepts, terms of execution, the procedure for calculating and features of financial sanctions were considered. In conclusion, it should be noted that of the four parts of the Budget Code of the country that are currently functioning, one of them is completely devoted to responsibility. Compared to the current legislation, the norms of the BC, devoted to the issues of liability for offenses in the field of budget legislation, can be considered as a step forward. Nevertheless, this part of the code (part IV) is still the weakest part of it.

First of all, it should be noted that in the BC of the Russian Federation there is no concept of a budget offense. Instead, it is customary to use the term "violation of budget legislation." According to Art. 281 of the Civil Code of the Russian Federation, improper implementation or failure to comply with the rules defined by this code for the preparation and subsequent consideration of draft state budgets, their approval, implementation and control over execution is recognized as a violation of this legislation.

This decision of legislators can be explained by the fact that until recently the legal system of the Russian Federation did not know other types of legal liability, in addition to traditional ones: disciplinary, administrative,civil and criminal. Thus, liability measures related to the violation of the norms of most parts of the legislation, unless, in accordance with their severity, they entailed criminal liability, were included in the Code of Administrative Offenses.