What is meant by the term "bad tax debt"? The answer is contained in paragraph 2.1 of section II of the Procedure for writing off bad tax debt of taxpayers, approved by the order of the Ministry of Revenue and Duties of Ukraine dated 10.10.2013 № 577 (hereinafter - the Procedure). Yes, a bad tax debt is:

1) the tax debt of a taxpayer duly declared bankrupt, the claims of which have not been satisfied due to the insufficiency of the bankrupt's property;

2) the tax debt of a natural person who: has been declared incapable in court, missing or declared dead, in case of insufficiency of the property, which may be levied in accordance with the law; died, in case of insufficiency of property, which may be levied in accordance with the law; is wanted for more than 720 days;

3) the tax debt of the taxpayer in respect of which the statute of limitations established by Art. 102 of Chapter 9 of Section II of the TCU;

4) tax debt of the taxpayer, which arose as a result of force majeure (force majeure).

5) tax debt of the taxpayer in respect of which an entry is made in the State Register on its termination on the basis of a court decision, and for banks - on the basis of the decision of the Deposit Guarantee Fund of individuals on approval of the report on liquidation of the bank; , approval of the final report of the liquidator and completion of the liquidation procedure.

In the cases provided for in paragraphs. 4 of the said paragraph 2.1 of section II of the Procedure, the taxpayer applies to the body of revenues and fees at the place of registration of bad tax debt and / or at the place of registration of such taxpayer with a written statement stating the amounts of taxes and fees to be written off. The application must be accompanied by the documents specified in paragraphs. 4 item 2.1 of section II of the Procedure, which confirm that the tax debt is considered bad (item 4.1 of section IV of the Procedure).

Based on the results of consideration of documents provided by the taxpayer, the head (his deputy) of the tax authority, if there are grounds, decides to write off bad tax debt, which is made on a form in accordance with Annex 1 to this Procedure (paragraph 4.2 of the Procedure).

The structural unit, the functions of which include the write-off of bad tax debt, performs such write-off quarterly within twenty calendar days following the last day of the deadline for filing a tax return (calculation) for the reporting (tax) quarter (paragraph 4.4 of the Procedure).

In addition, according to Art. 97 of the TCU, a debt that remains outstanding after the liquidation of a non-bankrupt taxpayer is also considered bad.

The procedure for writing off such tax debt is determined by the resolution of the Cabinet of Ministers of 27.12.2010 № 1231 "On approval of the Procedure for writing off outstanding monetary obligations or tax debt after the liquidation of the taxpayer, not related to bankruptcy."