It is not easy to get an installment or tax deferral. It is not always possible at the first attempt. But if you know where companies stumble and prevent these mistakes, you can significantly improve your chances. 

The grounds for installments and deferrals are listed in Article 64 of the Tax Code. Our practice shows that most often companies ask to postpone payments for two reasons: they cannot immediately repay all the debt accrued during the audit, or there is a threat of bankruptcy. In this article we will tell you what difficulties await a company when choosing one or the other ground, what to consider when applying for an installment plan and what security to choose so that the tax authorities do not revoke the authorization.

When the entire amount of additional tax assessments must be recognized

In order to obtain an installment plan in connection with a tax audit, a company must agree to all additional charges and not appeal against the FTSI's decision. If you are not ready to recognize the amount that is imputed to the company, and you want to argue, it will not be possible to take installments on this basis. Then choose the risk of bankruptcy, but it still needs to be proved. We will talk about this a little later. 

Make sure that you do not miss the deadline for filing an application for an installment plan. This is 10 working days after the decision on the audit comes into force (paragraph 5 of Article 64 of the Tax Code). We have had cases where companies missed the deadline through no fault of their own. They turned to the Debt Restructuring Platform for advice, and the call center specialists gave incorrect information. As a result, there was a misunderstanding and the companies missed the deadline. Therefore, we recommend to double-check all the information received from the Platform.

The Platform itself is a service on the website of the Federal Tax Service, where debtors and creditors can settle debts with the assistance of the tax service. Organizations and individual entrepreneurs can apply to the Platform. The service will allow you to analyze the possibilities of debt restructuring and choose the best way to repay it, speed up the preparation of documents, establish a dialogue with creditors who are not interested in restructuring. The application can be sent online.

Collection of documents

If a company claims an installment or deferment because of a risk of bankruptcy, the tax authorities will check whether such a threat actually exists. First, the inspectors will apply the standard method of inspection and, if it proves insufficient, they will use an in-depth one. Difficulties may arise for a company at both stages of the audit.

Information which the tax authorities will examine under the standard methodology is listed in paragraph 4 of Article 64 of the Tax Code. These are certificates from banks, a list of counterparties and other data confirming the basis for an installment plan. All information is provided by the company. Inspectors, in turn, will cross-check it with their sources. And if the organization has not submitted all the information, it will be left without installments. We have seen situations where companies did not provide statements from all the banks in which they had accounts. The inspectors found this out and refused the installment plan. Through their internal systems, controllers can see all the company's bank accounts, even special ones that the accounting department may not know about, as well as "empty" accounts. Therefore, you should not be tricky with bank statements in particular and in general with the documents you submit for inspection. 

Not always the standard way gives an answer whether the company is threatened with bankruptcy. Then the tax authorities go to an in-depth methodology, in which they must study additional information from the organization. This is where there is another snag - this additional information is not, the organization did not send it. Having previously sent only a standard package of documents, the company believed that if it comes to an in-depth audit, the controllers will request the necessary information from the organization.

In fact, inspectors do not send any requests for additional information. Tax inspectors usually consider an application for an installment plan on the last day of the period allotted for this purpose, i.e. on the 10th working day. And, as practice shows, most inspectors do not extend the deadline for consideration of the application. So the company has no opportunity to send the documents. This leads to the fact that the organization can not withstand the inspection and is deprived of installments. 

The only way out is to send as many documents as possible at once. There is no precise list of them anywhere. But, as practice shows, inspectors can request turnover-salary statements, contracts with counterparties, which contain detailed information on accounts receivable. 

There is one more point. Tax inspectors often ask to fill out the scorecard, which reflects the financial condition of the organization. If all indicators are specified correctly, it contributes to the receipt of installments and vice versa. Due to the fact that the card is not filled out the way the auditors want it, companies often receive decisions on refusal. 

Until recently, there were no recommendations on how to properly execute the card. But in a letter dated 17.08.2023 No BV-4-7/10590 the Federal Tax Service gave an example of how to fill it out (Annex No. 2). This is already a help, despite the fact that your company's figures may differ from those given in the example.

What to consider if the amount of arrears falls under the criminal threshold

It is permitted to apply for an installment or deferment as many times as you like. If a company is refused, it has the right to apply again. However, we recommend not to delay in obtaining an installment payment and correct mistakes promptly, otherwise you may be subject to criminal proceedings. 

The fact is that if the arrears exceed 18.75 million rubles, the controllers are obliged to hand over the audit materials to the investigative authorities (paragraph 3 of Art. 32 of the Tax Code, Federal Law № 79-FZ dated 06.04.2024). During the period while the inspectors are considering the application for an installment, the Unified Tax Service does not write off the amounts for debt repayment. Because of this, an underpayment may be formed, which is sufficient to refer the case to the investigators. In our work there have been cases when organizations refused installments at the final stage to avoid the risk of criminal charges. 

It is necessary to get an installment or deferment before the materials are handed over to law enforcers. It will not be granted later. At the same time, it is necessary to make sure that the arrears do not exceed the dangerous threshold of 18.75 million roubles.

Where to file an application

Let's assume that you have collected the necessary documents, written an application and are going to submit it all to the tax authorities. Even here there may be obstacles - inspectors will not take the application and may not even notify you about it. This happens because of disagreements between tax officials on who should take applications. 

In general, there are two bodies that deal with installments. Which of them to apply to depends on the amount of debt, the payment of which the company wants to postpone. If the debt is not more than 10 million rubles, an application for installment or deferment should be submitted to the regional department of the Federal Tax Service at the location of the company. If the debt exceeds 10 million roubles. - to the Interregional Debt Management Inspectorate of the Federal Tax Service (Order of the Federal Tax Service dated 30.11.2022 No. ED-7-8/1134). 

It seems simple, but some employees of the call-center of the Debt Restructuring Platform believe that the company should apply to its inspectorate at the place of registration. The latter, in turn, will forward all documents to the Debt Management Department or MIFNS. However, local inspectorates do not agree with this approach and recommend that companies send an application and documents directly to the Department or MIFNS. As practice proves, it is the Debt Management Office or the MIFNS.

Which collateral to choose

Once an organization has been approved for an installment plan, it must provide collateral. This can be a pledge of property, a bank guarantee, a surety bond or a combination of these. The company has only 30 days to provide collateral. Therefore, it is better to prepare in advance, taking into account the peculiarities of each type of collateral. 

Pledge of property. The inspectors will disclose the requirements for the property that can be pledged only after issuing a permit for installments. But we know from experience that the tax authorities are interested only in highly liquid assets. First of all, this is real estate. If you decide to provide real estate, collect documents confirming the ownership of the object and its cadastral value. 

To pledge movable property, you need to have it appraised. If you pledge transportation, take into account that controllers can set a maximum period of its operation. This means that vehicles older than a certain age will not be accepted as collateral. In addition, you will need to take out hull insurance, where the tax authority should be specified as the beneficiary.

Bank guarantee. For a company which receives an installment payment based on the results of an audit, this is the only type of security permitted (paragraph 6 of Article 64 of the Tax Code). In other cases, the company has a choice. However, remember that it is not cheap to obtain a guarantee. 

Surety. It covers a certain part of the debt. Which part, the inspectors will decide for themselves when they analyze the information available to them. 

Thus, despite the existing difficulties, the mechanism of installments and deferrals provides taxpayers with significant assistance in managing their tax debts. 

If you have any questions about tax installment – leave a request and Tax Compliance experts will advise and assist you.