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Debt: Can a bailiff take a tax refund?

Can a person struggling with bailiff enforcement receive a refund of tax from the Tax Office?

Will the bailiff have the right to seize funds due to the taxpayer to obtain money to pay the debt?

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Pursuant to the law, it is the duty of the Tax Office to return to the taxpayer an overpayment resulting from the annual settlement of income tax within 3 months from the date of submitting the declaration.

Unfortunately, not every overpayment will go to the payer’s account.

Tax refund and bailiff attachment

Tax refund and bailiff attachment

If the taxpayer’s assets have been subject to bailiff’s enforcement, the bailiff may also take over the tax refund. In order to do this, however, certain conditions must be met:

  • the amount of overpayment fully covers the taxpayer’s tax liability either
  • the taxpayer has no tax arrears.

In practice, this means that a tax refund can be attached only if the taxpayer has no arrears towards the tax authorities, and if he has them – the amount of overpayment should fully cover them.

Also future claims

Pursuant to the law, the bailiff has the right to seize benefits due to overpayment or tax refund, including future claims arising within a year of the seizure.

What does this mean for the taxpayer? If he is struggling with attachment, the bailiff can “send in advance” a request for attachment of an overpayment of tax to the Tax Office. If it turns out that it will take place within a year, the money will be transferred to the bailiff’s account.

Tax overpayment and the amount free from attachment

Tax overpayment and the amount free from attachment

Unlike execution from a bank account or remuneration, in the case of attachment of tax overpayment there is no amount free from attachment.

The bailiff is therefore entitled to seize the entire sum due to the taxpayer on account of the refund. Regardless of the fact that he also executes other assets.

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