Sergei Bakeshin has commented on a dispute for the double recovery of funds in favour of the Federal Tax Service

Sergei Bakeshin Senior Associate

The Supreme Court of the Russian Federation will consider a dispute on the double recovery of funds from the director of a company in favour of the Federal Tax Service, first as part of a civil lawsuit for tax evasion, then as part of subsidiary liability.

As the Head of the Dispute Resolution and Insolvency practice at Maxima Legal, Sergei Bakeshin explained to the website, that it cannot be said that the director has incurred liability twice for one violation – because in one case the offense was tax evasion, and in the other, the impossibility of completely repaying the claims of creditors. Sergei recalled the position of the Constitutional Court, which pointed out that the double recovery of damages is unacceptable, and that the director should compensate for the damage from non-payment of tax only if the tax cannot be exacted from the legal entity.

“In this situation, the collection by the court of the arrears from the director turned out to be premature. But this does not entail the illegality of the decision in the framework of the insolvency case”, commented Sergei.

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