Bellerage

Reorganization will not prevent from debt collection

Reorganization will not prevent from debt collection

Since January 1, 2017 tax authorities have the right to claim tax payments from affiliated entities and individuals, including owners and shareholders. Therefore, after reorganization of a company tax liabilities are transferred to the new legal entity.

On December 14, 2017, Supreme Court of the Russian Federation examined a case of a company that was reorganized after a tax audit, transferring all assets to a new legal entity and initiating bankruptcy proceedings. As a result, the new company was obliged to cover all the liabilities of the initial debtor.