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The Functioning of Tax Debt Collection: From Administrative to Judicial and the Consequences of Non-Payment

DÍvidas TributÁrias - SmartSolve

DÍvidas TributÁrias - SmartSolve

The payment of taxes is an obligation that falls on all citizens and companies, being essential for the financing of state activities. However, failure to comply with this responsibility can lead to a series of complications. This article aims to clarify how the collection of tax debts works, from the administrative to the judicial phase, and what are the consequences of not paying these debts.

 

Administrative Phase: The First Step

Initially, the collection of tax debts occurs in the administrative sphere. Upon identifying a default, the responsible agency will issue an infraction notice or a fiscal notification, informing the taxpayer about the debt. They then have a deadline to pay off the debt or present an administrative defense.

 

Installment Plans

In many cases, it is possible to arrange a payment plan directly with the collecting agency, thus avoiding the case from escalating to legal means. However, installment payments usually involve the payment of interest and fines.

 

Judicial Phase: The Escalation of Collection

If the debt is not paid or the administrative defense is denied, the debt can be sent to the judicial sphere. A fiscal execution will be initiated, and the debt will be collected by the courts. The debtor's name will be registered in credit restriction registers, such as Serasa and SPC, making it difficult to obtain financing and other forms of credit.

 

Seizure of Assets

In more serious cases, there may be the seizure of assets to pay off the debt, which may include real estate, vehicles, and even bank accounts.

 

Consequences of Non-Payment of Tax Debts

Financial Restrictions

One of the most immediate consequences is credit restriction, which can affect both individuals and companies. Companies may find it difficult to capitalize, thus affecting their operation.

 

Fines and Interest

In addition to the original value of the debt, the taxpayer will be subject to fines and interest, which can make the debt even more challenging to pay off.

 

Criminalization

In some cases, depending on the amount and nature of the debt, the non-payment of taxes can be considered a tax evasion crime, with the possibility of the responsible person being imprisoned.

 

The payment of taxes is an obligation that should be taken seriously by all taxpayers. The process of collecting tax debts can start administratively but, if not resolved, can escalate to the judicial sphere, bringing a series of negative consequences. Therefore, it is essential to be up-to-date with tax obligations or seek ways to regularize pending issues as soon as possible to avoid future problems.

 

(ARAUJO, Robson. The Functioning of Tax Debt Collection: From Administrative to Judicial and the Consequences of Non-Payment)

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