Intended implementation of an out-of-court process for debt collection on tax obligations from Russian individuals by authorities.
Starting November 2025, Russia plans to implement a new extrajudicial debt recovery procedure for individuals, targeting unpaid tax debts declared by citizens themselves during tax declarations. This extension of a procedure currently applicable only to businesses is expected to streamline and accelerate the debt recovery process, reducing the workload on courts.
### How the Procedure Works
The tax authorities will send a notification or demand for payment to the debtor. If the individual does not pay or raise an objection within 30 days, the tax inspectorate will make a decision to recover the debt without going to court. Initially, money will be automatically debited from the individual's bank accounts. If funds are insufficient, bailiffs will be involved to recover the amount from the debtor’s property. Notifications may be sent through the Federal Tax Service personal account, the Gosuslugi government services portal, or registered mail.
### Implications for Millions of Citizens
This measure is likely to affect millions of Russian citizens who submit their own tax declarations, exposing them to sudden debt collection without court intervention if they do not dispute the claims. The automated nature of the procedure, including direct account debiting, could increase financial pressure on individuals.
### Controversy and Concerns
The extrajudicial procedure has raised concerns about due process and the potential for unfair or automatic debt collection, especially if individuals miss the 30-day objection window. Critics argue that this could lead to situations where people lose money without adequate opportunity to contest claims, given the rapid and enforced nature of the collection.
Transparency and access to dispute mechanisms will be crucial to safeguard citizens' rights under the new system. While the high rate of valid claims justifies the system, the speed and automation of the process may create risks of errors or undue hardship on individuals not expecting sudden debits.
In summary, Russia's new extrajudicial debt recovery initiative for individuals aims to simplify tax debt collections by bypassing courts unless objections are raised. However, it introduces significant concerns about legal safeguards and financial protection for ordinary citizens facing sudden recoveries starting late 2025.
- In light of Russia's new debt recovery initiative, millions of individuals who self-declare their taxes may face sudden collection without court intervention, potentially causing financial strain due to direct account debiting.
- As the new extrajudicial procedure involves automation and a 30-day objection window, it raises concerns about potential unfair practices, as well as the risk of errors or undue hardship on citizens who might not anticipate sudden debits in their bank accounts.
