Izvekov S.S. Particular Issues of Legal Treatment of Fulfilling Obligations to Pay Value-Added Tax in Case of Taxpayer's Bankruptcy

Abstract: The subject of the research is the problems arising in the process of application of tax and levy legislation and competition laws. Particular usses related to the topic of the research are sometimes viewed by researchers who analyze the process of regulation of legal relations in case of bankruptcy. However, there is a lack of comprehensive researches on particular issues of fulfiment of obligations to pay VAT in case of bankruptcy. The author of the present research article examine such aspects of the topic as the development of the legal concept of tax responsibilities of an insolvent taxpayer, tax effects of the decision to sell property and/or property rights of an insolvent taxpayer by single lot, debtor's assets, to replace debtor's assets and seize an insolvent taxpayer's property by a mortgagee. Special attention is paid to the classification of legal approaches developed as a result of changes in the legislation and explanations of supreme judicial authorities. The research is based on the methods of historical and comparative legal studies. The researcher describes contradictions in the legislation and judicial practice regarding fulfilment of obligations to pay value-added tax in case of taxpayer's bankruptcy. Legal views are calssified depending on the periods of applicability of different versions of the Tax Code. The author also uses the methods of legal modeling when analyzing obligations to pay VAT when property has been sold as a property complex or by single lot as well as when a debtor's assets have been replaced. The researcher offers theoretical and practical recommendations on solving the issues arising in the process of application of tax laws and bankruptcy laws. The researcher also makes an attempt to systematize different interpretations of laws and fill in the gaps in legal regulation. As a result of his detailed analysis of tax obligations to pay VAT, the author defines positive and negative factors of selling the bunkrupt's property by one lot, debtor's enterprises or assets, replacement of debtor's assets and seizure of an insolvent taxpayer's property by a mortgagee. As a result, the author offers mechanisms of minimization of losses for taxpayers in case of bankruptcy and relevant tax control activities conducted in relation to both debtors and their counterparts. The author makes recommendations in improving the provisions about justified tax benefits through making amendments in the tax and bankruptcy laws. In particular, the author offers to make certain conditions that would support the fiscal interest of the governnent. Peculiar conclusions have been made regarding autonomous legal standing of creditors' association whose decisions often result in tax consequences for the taxpayer in debt or his counterparts.  

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