What tax enforcement is and how this judicial process works

What tax enforcement is and how this judicial process works

Table of Contents

Tax enforcement was regulated in the 1980s and provides that citizens who have debts with the organs of the public farm are duly charged and assessed. Unfortunately, having debts in tax foreclosure it is more common than it looks and, today, it reaches more than 30 million UK citizens.

Despite being a very recurrent thing, not everyone knows what it is or how to to prevent not to fall into this charge type. For this reason, we have developed a comprehensive guide with everything you need to know about the tax enforcement process. In it, you will find information how:

  • What is tax enforcement;
  • What is active debt;
  • What are the steps in the tax enforcement process;
  • How law processes work;
  • What are the legal rules regarding tax enforcement;
  • How to consult a tax enforcement process;
  • What to do in case of debts in tax foreclosure;
  • What are the dangers of not paying the tax foreclosure.

Are you curious? So, to better understand what is tax enforcement and other relevant information on the subject, follow our text and get informed! Good reading!

What is tax enforcement?

Tax enforcement is a lawsuit filed between public bodies and individuals or legal entities for the collection of debts pending payment..

It is good to point out that, judicial process it is only opened if the collection through administrative channels is not completed. Therefore, it is necessary that a charging action open, for the purpose of payment be carried out.

This action begins with the opening of a Active Debt Certificate, which groups the unit information debtor. Through it, it is possible to initiate the process of debts in tax foreclosure so that the payment is made faster.

The debts that generate tax foreclosure can have several origins, namely:

  • Municipal;
  • State;
  • With the Federal District; or
  • With the Union.

Now that you know what it is tax enforcement, better understand what is active debt and how to pay it off.

What is active debt?

For there to be control over indebtedness, you federal, state and municipal governments have a register with all debtors.

Therefore, the active debt is this register, in which the information of all the people who have some debit type with these bodies are registered.

Registration is carried out by means of a communication to the Attorney General of each responsible region. After this step, the issuance of the Active Debt Certificate (CDA), which sets up open accounts to be paid by the citizen.

What are the steps in the tax enforcement process?

Now that you know what tax enforcement is, we need to understand what the steps are in tax enforcement process so that you can plan your debt payments.

Firstly, after 2 months (60 days) since the organs of the public farm do not receive the amounts through administrative channels, the CDA is issued.

After the shipment of the Active Debt Certificate, the debtor has a period of up to 5 days to make the payment of the debt or to nominate its debtors. assets for attachment. These goods must have equivalent value to cover not only the debt, but also their fees and fines.

Lacking payment or indication of attachment goods by the debtor himself, the Tax Enforcement Law allows any good to be pledged. For this, an embargo order is followed:

  • Cash;
  • Public debt or credit security;
  • Stock exchange quotation;
  • Precious stone and metals;
  • Properties;
  • Sea and air transport;
  • Vehicles;
  • Furniture; and
  • Law and actions.

How do law processes work?

According to Law 6,830 / 1980, also known as the Tax Enforcement Law, the Public Treasury and its bodies, have the right to become holders of a collection process against its debtors.

The Tax Enforcement Law was created from the need to determine deadlines and standardized actions in the act of collecting direct debts from the State. Thus, it is necessary that some requirements are fulfilled so that tax enforcement actually takes place.

Among these requirements is the debt filing through the Active Debt Certificate. The certificate will guarantee collectors and debtors the agreed values, as well as the beginning of the counting of days until the beginning of the debt process in tax foreclosure.

What are the legal rules regarding tax enforcement?

Now that you know what tax enforcement is, the guiding law and the processes that follow it, it is also necessary to know what are the legal rules regarding tax enforcement.

As has been said, for the tax enforcement process to begin, there must be a debt against the Government. These debts can be characterized as municipal, state and federal level. And debt can be tax or non-tax.

Tax debts are debts arising from the non-payment of taxes. fixed and recurring rates. Tax enforcement for lack of payment of taxes is very common. IPTU, IPVA and Income Tax.

Non-tax debts, on the other hand, refer to traffic fines, rents, indemnities, contributions etc.

As from the failure to pay one of these debts for a period of 60 days, the Active Debt Certificate is issued, giving follow-up to the process tax enforcement immediately thereafter.

How to consult a tax enforcement process?

Knowing how to consult a tax enforcement process it is an important step in this process. Therefore, if there is a communication of active debt, it is extremely necessary to carry out the consultation.

To consult a tax foreclosure for non-payment of IPTU, it is possible to access the website of the Municipality of the municipality where the property is located and carry out the search through its CPF or, also, in person.

To perform a tax enforcement consultation for non-payment of IPVA, just go to the website of your state's Finance Department and include your data and vehicle data.

For other queries, contact or access the Federal Justice website of your State and carry out the procedural consultation to know data of the process that is underway.

What to do in case of debts in tax foreclosure?

Before anything, contact a lawyer immediately of your trust. Only he can indicate the best steps to follow within this process. THE tax enforcement, although it is a safe process, it can present errors calculation and other problems.

Therefore, the presence of a professional will be of great value in the whole process. If your company is the target of the process, it is also recommended to hiring a counter.

Considering the penalties of lack of payment of tax enforcement, as you will see below, it is recommended to pay your debt as soon as possible.

Therefore, as soon as you are notified you have the option to:

  • pay the debt
  • install the debt
  • submit a request for review; or
  • make an advance offer through a deposit or attachment of an asset.

To define the best option in your case, consult your cash values ​​and the action indicated according to the advice of the lawyer and / or accountant.

Remember that the non-payment of this debt it can carry interest much higher than the initial amount that should be paid. Therefore, pay the debt on time stipulated is always the best option for you and your Business.

To better understand what are the risks of non-payment of a tax foreclosure, check out the next topic.

What are the dangers of not paying the tax foreclosure?

Be you natural person or representative of a company, having a debt is not a good sign. This is because, the non-payment of billing amounts and, subsequently, tax enforcement, can earn interest and fines, which will make a relatively small amount, to several developments.

In addition to these problems, being with the dirty name can be a big delay for you or your company, especially if you want to start new partnerships or make purchases requiring credit analysis.

It is also important to remind you that if you are charged through tax foreclosure, there is a possibility of pledge your assets to make the payment. This, despite being a viable solution for many, also presents itself as a problem, due to the loss of own or business assets.

In all cases, knowing what tax enforcement is is already a good first step to go through this situation, not having to pay even higher fees or losing part of your assets.

Time to keep the accounts up to date!

In order to avoid a tax foreclosure, it is important to have your well-organized finances. Remember that there are fixed fees to be paid with certain periodicity, and those, which appear unexpectedly, either in your personal life or within a company.

So as not to be taken by surprise, organize your finances considering the fixed and variable expenses, always maintaining values ​​reserved for emergency cases. This is a way of not having your debt taken to more advanced stages, such as tax enforcement.

However, if you find yourself in this situation, do not worry! There are ways to quickly alleviate or remedy this problem. As, for example, making loans.

To find out if taking out a loan is a good way out for the payment of tax foreclosure and other debts, check out more information in our article: Loan to settle debts? Learn if it pays to do!

Therefore, we hope that our guide has helped clear up possible doubts on what is tax enforcement and all its consequences.

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