Recovery of losses as a result of the illegal blocking of an account

Recovery of losses as a result of the illegal blocking of an account

LEGAL DIGEST \ 18.03.2020

If transactions on your company’s account are stopped unreasonably, the tax authorities may be called to account for illegal actions. At the same time, it is possible to recover from them not only losses, but also court costs as well as interest. Acsour’s Legal Department has prepared materials from which you will learn in which cases it is possible to legally recover the losses incurred.

Recovery of losses

It is not easy to recover losses from the tax authorities, but it is quite realistic. Companies that intend to recover losses should consider the following nuances:

  • The issue of the recovery of losses may be raised only if the decision to suspend operations on the company’s accounts is illegal, or if the tax authorities have delayed unblocking the account
  • It is necessary to prove both the amount of the losses and the fact that they occurred precisely because of the blocking of the account. In other words, it is necessary to confirm the causal relationship between the actions of the tax authority and the additional expenses of the company

Recovery of court costs / state fee.

Let us consider the case: The Federal Tax Service took a decision to block an account. However, when the company applied to the court, it was refused, since at the time when the case was considered, the injunctive remedy had already been cancelled. Therefore, the company could not prove that the decision to block had violated its rights in any way. At the same time, the courts awarded the state fee against the company, since its claims were not met.

As a result, the Supreme Court declared the award of the state fee illegal. The illegal blocking of accounts in itself violates the rights and legitimate interests of the taxpayer; therefore it is not necessary to prove that a real violation of rights is occurring. In a case where the defendant voluntarily adjusts the claims after the plaintiff has applied to the court and the court has issued a judgment, court costs and state fees are subject to recovery from the defendant (in our case, from the tax authorities).

The recovery of interest.

The company may demand that the Federal Tax Service reimburse interest in the cases when the tax authorities have:

  • violated the deadline for cancelling a decision to block an account;
  • violated the deadline for sending to the bank a decision to cancel the blocking of an account;
  • illegally taken a decision to block an account.

Interest should be calculated based on the amount to which the suspension was applied and should be accrued for each calendar day of blocking or delay. The rate is equal to the Central Bank’s key rate that was in effect on the days of the blocking. As a rule, the reimbursement of state fee and court costs takes place at the end of the legal proceedings, meaning that the plaintiff sometimes forgets about the recovery of interest or supposes that the court will immediately refuse. Do not jump to conclusions, because recovery of interest is just as much a right of the company as the recovery of losses and the state fee.

Many companies believe that it is a waste of time and money to appeal to a court to defend violated rights if they are violated by government authorities. However, practice suggests the opposite, because no company is immune from illegal actions on the part of the government authorities, including tax authorities.

If your rights have been violated, do not ignore this issue or be afraid to appeal to a court. Acsour’s Legal team will help you to protect your legal rights and interests, as well as to recover losses incurred by your company.