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When a public debt is concerned, a limitation assessment starts with the type of receivable, its due date and the actions taken to establish and collect it. The age of the debt alone is insufficient to determine whether it can be collected through enforcement.<\/p>\n
Under Article 171(1) of the Tax and Social Insurance Procedure Code (DOPK), the general limitation period for public receivables is five years, unless a statute provides for a shorter period. It runs from 1 January of the year following the year in which the debt should have been paid.<\/p>\n
The limitation period may be suspended or interrupted under Article 172 of the DOPK. During suspension, time does not run for the relevant period; interruption starts a new period. The assessment therefore examines the act establishing the debt, any appeal against it, protective measures and specific enforcement actions. An objection may be submitted to the competent authority when relying on the five-year limitation period.<\/p>\n
Article 171(2) of the DOPK provides for a ten-year period with the same starting point, irrespective of suspension or interruption of limitation. However, the statute expressly excludes cases where:<\/p>\n
The ten-year limitation period therefore cannot be applied unconditionally to every public receivable. Particularly in insolvency, the applicable version of the statute and the dates of the relevant facts must be checked. A general assertion that the DOPK takes precedence over Article 685a of the Commerce Act is insufficient.<\/p>\n
Under Article 173(2) of the DOPK, receivables are written off ex officio upon expiry of the period under Article 171(2), where the conditions for its application are met. In that situation, no application is required for the authority’s duty to write off the receivable ex officio to arise.<\/p>\n
Expiry of the limitation period bars compulsory collection, but a voluntary payment made afterwards is not refundable under Article 174 of the DOPK, including where the debt had been written off. It is therefore sensible to have the specific debt reviewed before paying.<\/p>\n
Prepare a statement of debts, the acts establishing them, notices and evidence of service, documents from the enforcement file and details of any deferral, instalment arrangement or insolvency. For older debts, the legal provisions applicable at the relevant time must also be checked.<\/p>\n
For an assessment of limitation and the appropriate protection, you can contact Tomovi Law Firm.<\/p>\n
Official information:<\/strong> National Revenue Agency \u2014 limitation periods for public receivables<\/a>. Relevant provisions: Articles 171\u2013174 of the DOPK.<\/p>\n