In order to minimize the budget expenditures for execution of executive actions, in order to secure financing of these costs in the activities of a private performer, the legislator provides for the mandatory advance payment of the costs incurred for the execution of executive actions. Part 2 of Article 26 of the Law of Ukraine "On Enforcement Proceedings" stipulates that before the application for enforcement of the decision, the payer adds a receipt for payment of an advance payment of 2% of the amount, but not more than 10 minimum wages, and by a decision of a non-property nature - in the amount of one minimum wage from the debtor - an individual and in the amount of two minimum wages from the debtor - a legal entity. The specified article further defines the category of decisions by which the taxpayers are exempted from the payment of the advance payment and the range of persons - taxpayers who are also exempted from payment of the down payment. Most importantly, the down payment is not the payment of an executor's service and is not his income.
Advance payment is NOT paid
Part 2 of Article 26 of the Law of Ukraine "On Enforcement Proceedings":
From the payment of an advance payment, the collectors are discharged for decisions on:
- Recovery of wages, renewal at work and other requirements arising from labor relations;
- calculation, appointment, recount, implementation, provision, receipt of pension payments, social benefits for disabled citizens, payments for compulsory state social insurance, payments and benefits to children of war, other social benefits, surcharges, social services, benefits, benefits, benefits;
- compensation for damage caused by injury or other damage to health, as well as the death of an individual;
- the payment of alimony;
- Compensation for property and / or non-pecuniary damage caused as a result of a criminal offense.
The state bodies, the invalids of war, the invalids of groups I and II, the legal representatives of disabled children and incapacitated persons with disabilities of groups I and II, citizens of categories 1 and 2 suffered as a result of the Chernobyl disaster are released from the payment of the advance payment, in case of their appeal to the bodies of the state executive service.
In case of execution of the decision of the European Court of Human Rights, the advance payment is not paid.
The order of payment of advance payment
Upon presentation of the execution document to the executor, the payer pays the down payment to the account of the appropriate agency of the ICE or the private executor. Each private executor has his own special account open for such purposes in the state bank. The details of his account can be provided by the private executor himself.
Invoice for payment of advance payment
Some enterprise collectors for the advance payment request ask executors to submit an invoice. Please note that the invoice is provided when selling goods or rendering services. Public and private performers DO NOT SELL GOODS AND DO NOT PROVIDE SERVICES. An executor performs a state function. Similarly, a plaintiff can not claim an invoice when he pays a litigation fee.
The amount of advance payment is not lost
Most lawyers mistakenly identify the down payment with court fees when filing an action.
The court fee is paid to the state budget irrevocably and subject to further collection from the defendant. In case of impossibility to collect money from the defendant (the debtor), the plaintiff (the payer) actually loses the amount of the court fee paid.
This is the difference between a court fee and a down payment.
The down payment is paid on a special account where they are stored. From these funds, the executor carries out expenses for conducting executive proceedings. In particular, the use of registers, stationery, paper, stamps and other expenses is paid for this particular enforcement proceedings. In most cases, the costs of enforcement proceedings reach up to 500,00 hryvnia, if not carried out examination, evacuation of vehicles, compulsory opening of doors, etc.
EXAMPLE: According to the executive document on the collection of UAH 1 million, an advance payment of UAH 20,000 was paid. In executing executive acts, the executor was spent 500 hryvnias, but the debtor could not recover a penny. Upon completion of the enforcement proceedings, the performer shall refund the remaining 19 500 UAH.
In case if from the debtor, say, will be able to collect only 850 hryvnas, then from them will be offset all expenses (500 hryvnas) and the receiver will be refunded the advance payment in full (20 000 hryvnias). The remaining 350 hryvnias will be distributed as follows: UAH 318.18 - will be transferred to the payer as a partial debt recovery (from 1 million), and 31.82 UAH (10%) - executive fee (OV PV).
The down payment is returned to the collector
- If the collector applied to the executor, but the enforcement proceedings were not open, and the enforcement document was returned without acceptance, the advance payment paid is due;
- In case of return of the executive document on the grounds provided for in part one of Article 37 of the Law of Ukraine "On Enforcement Proceedings", the unused sums of the advance paid by him shall be returned to the collector. At the written request, the payer executes a report on the use of the down payment;
- At the end of the enforcement proceedings or the return of the enforcement document to the payer, the advance payment is returned to the payer, unless otherwise provided by this Law.
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