TAX DEBT, OVERDUE PAYMENT, PUBLIC DUES, ENFORCEMENT, OUTSTANDING PUBLIC DUES ENFORCED AS TAXES
The responsibility of the Tax Administration Office (Adóigazgatási Iroda) extends not only to the collection of taxes, surcharges and fines for the local government, but also to the collection of public dues enforced as taxes from individuals residing in the district, e.g., custody fee. Prior to the enforcement procedure, we send a payment notice to our taxpayers about the amount of the arrears and the consequences of the procedure and call them to pay the outstanding amount voluntarily. In case of non-payment, an enforcement procedure is launched which may involve an official transfer order (collection order) to impose deductions on wages and pensions and to seize movables. In case of larger debts, the property may be encumbered by a mortgage, and in the case of receivables exceeding HUF 500,000, also an enforcement right. For vehicle tax debts if the debt exceeds the amount of tax payable for one year, the tax authority may initiate deregistration of the debtor’s vehicle through the Budapest Metropolitan Government Office 12th District Government Window (Okmányiroda).
In the case of public dues enforced as taxes, the local tax authority does not act within its own competence but implements the enforcement of payment obligations established by another body or authority (reporting body) due to non-fulfilment of voluntary performance. In the case of individuals, it is the responsibility of the municipal tax authority with jurisdiction over the taxpayer’s place of residence to collect the debt in an enforcement procedure.
When recovering public dues enforced as taxes, the procedure is initiated ex officio at the request of the reporting body, whereby the tax authority itself assesses the application for a payment facility with the provision that any abatement requires the prior consent of the body requesting the enforcement.
How to apply
- Enforcements of debts are launched ex officio. A request for payment is sent first, followed by enforcement in the event of non-compliance.
A flat rate of HUF 5,000 is charged in each case where enforcement is implemented.