State Tax Service warns of account freezes and temporary travel bans due to tax debts

Unpaid tax obligations can have consequences for citizens that go far beyond additional financial costs. The State Tax Service of Khmelnytskyi Oblast emphasised: if a debtor ignores their duties, the state has the right to resort to coercive measures, including the freezing of funds in bank accounts, the seizure of assets, and a temporary restriction on the right to leave the country in cases provided for by current legislation.

Coercive collection mechanism

As noted by the tax inspection, the debt collection process is regulated by the Law of Ukraine “On Enforcement Proceedings”. If a taxpayer does not voluntarily settle the debt, enforcement authorities are involved. Depending on the circumstances of the case, the following measures may be applied to the debtor:

• Freezing of bank accounts: funds in accounts may be frozen, depriving the owner of the ability to freely dispose of them.
• Seizure of assets: both movable and immovable property belonging to the debtor may become subject to seizure.
• Travel restrictions: in situations defined by law, an individual may be temporarily prohibited from crossing the state border.

At the same time, the State Tax Service clarifies that the presence of a debt does not automatically block all bank cards or prohibit travel for every debtor. Such restrictions are introduced only in the presence of specific legal grounds and taking into account the details of the case.

Self-check tools

To avoid the accumulation of arrears and subsequent court disputes, individuals are recommended to regularly monitor their settlement status with the budget. This can be done remotely, without visiting the tax inspection, using two digital services:

• Electronic Taxpayer Cabinet — allows checking information on tax obligations and current settlements;
• Mobile application “My Tax” — provides access to tax information from a smartphone.

Timely checking will help identify possible arrears and determine whether actions are required to settle them.

Recommendations for taxpayers

The tax service calls on citizens not to postpone checking their obligations. If a debt has already arisen, it is important to verify its amount and the grounds for its accrual, as well as clarify the procedure for settlement. This will help avoid additional costs, court hearings, and enforcement measures.

It was previously reported that the Bureau of Economic Security (BES) uncovered a scheme for evading tax payments in a chain of meat product stores. The company processed part of its sales through 130 controlled individual entrepreneurs. As a result, the state budget failed to receive UAH 23.5 million, which was subsequently recovered. The company's chief accountant was notified of suspicion, and the case materials were referred to court with a petition for exemption from criminal liability.