When Tax Arrears Are Recovered Without a Tax Audit: Court’s Position and Expert Commentary

A Pravo.ru article examines a legal dispute over whether real estate can be seized to recover tax arrears without conducting a tax audit. The case has attracted attention within the legal community as it raises questions regarding the application of Article 169 of the Russian Civil Code and the legal consequences of declaring a transaction invalid.

Natalia Afanasyeva shared her views on the case:

“In addition to reasonable doubts as to whether there are actual legal grounds for applying Article 169 of the Civil Code to the legal relations in question, the significant discrepancy between the scope of liability established by this provision and the consequences of the invalidity of the transaction applied by the court also deserves attention.”
The expert notes that the application of Article 169 of the Russian Civil Code in this case raises legitimate concerns. In her view, equally important is the discrepancy between the scope of liability established by law and the consequences of the invalidity of the transaction imposed by the court.