Speaker
Description
The enforced collection of tax receivables represents the final stage of tax administration, through which the state forcibly recovers owed amounts (taxes, duties, contributions) if they have not been paid voluntarily. The procedure is primarily regulated by Law no. 207/2015 on the Tax Procedure Code.
The tax authority may use the following methods, successively or simultaneously:
• Garnishment (Attachment of Assets): Blocking bank accounts or withholding amounts owed to the debtor by third parties (e.g., employer, clients).
• Enforced Execution of Movable Property: Seizure and sale of objects, inventory, or vehicles owned by the debtor.
• Enforced Execution of Immovable Property: Seizure and auctioning of land or buildings.
Enforced collection begins with the service of a summons. If the debt is not settled within 15 days of the summons notification, or if the tax authority is not notified regarding the intent to initiate a mediation procedure, the enforcement measures continue. The summons is accompanied by a copy of the enforceable title issued by the enforcement body.
In order to carry out the mediation procedure, the debtor shall notify the tax authority of their intention within 15 days of receiving the summons. The notification must be accompanied by documents and information supporting their economic and financial situation.
Any seizable amounts representing income and cash availability in local or foreign currency, securities, or other intangible movable assets, held by and/or owed to the debtor by third parties—or which they will owe/hold in the future based on existing legal relationships—are subject to enforced collection through garnishment.
Any movable assets of the debtor are subject to enforced execution, with the exceptions provided by law. The enforced execution of movable assets is carried out through their seizure and recovery (liquidation), even if they are held by a third party. The seizure is established through an official minute (proces-verbal).
If the tax debt is not settled within 15 days from the date the seizure minute is concluded, the seized assets shall be liquidated without further formalities, except for situations where, according to the law, the seizure was lifted or the enforced collection was suspended.
The competent enforcement body proceeds with the recovery of the seized assets through:
a) agreement of the parties;
b) sale of movable assets through consignment;
c) direct sale;
d) sale by auction, including by electronic means;
e) other methods permitted by law, including the recovery of assets through auction houses, real estate agencies, or brokerage firms, as applicable.
