Silent arrest: the bank can take funds from your account and you won’t find out about it right away

If a person has a tax debt, the bank can play a crucial role in facilitating its repayment to the state.

The process of resolving the issue begins when the tax service detects a person’s debt, for example, due to non-payment of taxes.

If such a situation arises, the tax service has the right to apply to the court to confirm the existence of the debt officially. In the event of receiving a court decision, the tax service issues a referral to the bank where the debtor has an account.

This document contains information about the amount that must be withdrawn from the account to repay the tax debt. The bank is obliged to comply with the tax service’s instructions and transfer the funds to the state.

Experts from the State Tax Service provided this information in the “Questions – Answers” section of the knowledge base.

This mechanism effectively contributes to debt collection, ensuring the receipt of funds into the budget to finance critical social needs, such as education, healthcare, and infrastructure projects. This enables the state to maintain a high standard of living for its citizens, thereby contributing to the development of key initiatives and services.

Recall that even small amounts, such as 100 hryvnias, can affect access to banking services. It has also been previously reported that the military can reduce the financial burden of loans, although new loans may not be available.