Prohibition to travel abroad in case of tax debt

How is the temporary restriction on the right of the head of a legal entity or a permanent representative office of a non-resident debtor to leave Ukraine applied in case of non-payment of a tax debt exceeding UAH 1 million within 240 calendar days from the date of delivery of the tax claim to the taxpayer?

Pursuant to para. 87.13 of the TCU, in case of non-payment within 240 calendar days from the date of delivery of the tax claim to the taxpayer of the amount of tax debt exceeding UAH 1 million, the controlling authority may apply to the court for a temporary restriction on the right of the head of a legal entity or permanent establishment of a non-resident debtor to leave Ukraine until such tax debt is repaid.

The requirements of the first paragraph of clause 87.13 of the TCU do not apply if there is an obligation of the state to return to the legal entity or permanent establishment of a non-resident debtor erroneously and/or overpaid monetary obligations, budgetary refund of value added tax, if the total amount of the state's outstanding debt to the debtor is equal to or exceeds the amount of the tax debt of such debtor.

A temporary restriction on the right of the head of a legal entity or permanent representative office of a non-resident debtor to travel outside Ukraine is imposed as an interim measure to enforce a court decision or a decision of the head of a supervisory authority to recover the amount of a tax debt.

If a temporary restriction is imposed on the right of the head of a legal entity or permanent representative office of a non-resident debtor to travel outside Ukraine pursuant to a court decision that has entered into force, the controlling authority shall, no later than the next business day after receiving the court decision

► informs the central executive body that implements the state policy in the field of state border protection in accordance with the information exchange procedure approved by the central executive body that ensures the formation and implementation of the state financial policy, together with the central executive body that ensures the formation of the state policy in the field of state border protection;

► places the relevant information in the Register of Debtor Taxpayers.

No later than the next business day from the date of crediting funds to the relevant account of the body responsible for the treasury servicing of budgetary funds, and/or in other cases of repayment of the tax debt in the amount specified in the court decision as of the date of such court decision, or in case of receiving information from the Unified State Register of Legal Entities, Individual Entrepreneurs and Public Organizations (hereinafter - the USR) on the change of the head of a legal entity or permanent establishment of a non-resident debtor, or in case of commencement of court proceedings in the sphere of

♦ informs the central executive body that implements the state policy in the field of state border protection in accordance with the information exchange procedure approved by the central executive body that ensures the formation and implementation of the state financial policy, together with the central executive body that ensures the formation of the state policy in the field of state border protection, which is the basis for the cancellation of the established temporary restriction on the right of departure of the head of a legal entity or permanent representative office of a non-resident

♦ places the relevant information in the Register of Debtor Taxpayers.

Pursuant to clause 87.14 of the TCU, the temporary restriction on the right of departure of the head of a legal entity or permanent representative office of a non-resident debtor is terminated in case of repayment of the tax debt specified in the court decision in connection with which such restriction was applied, or in case of receipt of information from the USR on the change of the head of a legal entity or permanent representative office of a non-resident debtor, or in case of commencement of bankruptcy proceedings against such debtor.