According to Clause 94.1 of the Code of Administrative Offenses, the administrative seizure of a taxpayer’s property (hereinafter referred to as property seizure) is an exclusive way of ensuring that the taxpayer fulfills his obligations, defined by law.
According to clause 94.2 of the Code of Civil Procedure, seizure of property can be applied if one of the following circumstances is found:
- the taxpayer violates the rules of alienation of property held in tax lien;
- an individual who has a tax debt moves abroad;
- the taxpayer refuses to conduct a documentary or actual inspection if there are legal grounds for conducting it or to allow officials of the controlling body;
- there are no permits (licenses) for carrying out economic activities, as well as in the absence of registrars of settlement transactions and/or software registrars of settlement transactions registered in accordance with the procedure established by law, except for cases specified by law;
- lack of registration of a person as a taxpayer in the supervisory body, if such registration is mandatory according to the TCU, or when a taxpayer who has received a tax notice or has a tax debt, takes actions to transfer property outside of Ukraine, hide it or transfer it to others persons;
- the taxpayer refuses to carry out an inspection of the state of preservation of the property, which is in a tax lien;
- the taxpayer does not allow the tax administrator to draw up a deed of description of the property, which is transferred to a tax lien;
- the taxpayer (his officials or persons who carry out cash settlements and/or carry out activities subject to licensing) refuses to carry out, in accordance with the requirements of the PKU, an inventory of fixed assets, tangible assets, funds (removal of balances of tangible assets, cash );
- a non-resident starts and/or carries out economic activity through a permanent representative office on the territory of Ukraine without being registered for tax purposes, which is confirmed by an inspection report.