The Russian Supreme Court has banned the Federal Tax Service (FTS) from demanding the blocking of bank accounts of individual entrepreneurs (IEs) that are opened for personal purposes and not for conducting business, according to the website of Opora Russia.

It is specified that tax debts can be written off from "personal" accounts only by court order and as part of enforcement proceedings.

In 2019, VTB Bank had a dispute with the tax inspectorates in the Moscow region and the Pskov region. Then the bank "froze" at the request of the supervisory authority several business accounts of individual entrepreneurs, but refused to block the accounts that these same clients had opened as individuals. VTB was fined 165 thousand rubles for this.

"The Supreme Court of the Russian Federation, where VTB complained, agreed with the bank's argument that, unlike individual entrepreneurs and legal entities, tax collection from individuals is possible only in court," the report says.

As it was told in the "Opora Rossii", the organization is working on the problem of blocking the accounts of entrepreneurs. A special working group has been set up at the committee for financial markets to do this.

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Author: Ksenia Gustova