en
az
ru
tr
Can salaries be paid when there is an order to freeze a bank account?
The tax authority has issued an order to freeze funds amounting to AZN 5,000 in the taxpayer’s bank account. The account contains this amount, and the taxpayer wishes to pay an employee’s salary. Is it possible to make the salary payment in this situation?
Under the legislation, if the funds in a taxpayer’s bank account are insufficient to execute the taxpayer’s payment instructions and satisfy all claims made against them, funds are debited from the account in the order of priority established by law.
Pursuant to Article 65.6 of the Tax Code and Articles 965.2.2 and 965.2.3 of the Civil Code, documents providing for the payment of salaries and severance benefits to employees working under employment contracts have priority under the legally established payment order. Once such documents have been executed, funds are debited from the account under payment instructions for transfers to the state budget, the extrabudgetary state funds for compulsory state social insurance and unemployment insurance, the compulsory health insurance fund, and municipal budgets.
This means that when the funds in the account are insufficient to execute all payments simultaneously, salary payments are considered in accordance with the priority order established by law.
However, whether the salary can actually be paid when an order to freeze AZN 5,000 in the bank account is in place depends on the legal nature of the order and the scope of the restriction imposed. Therefore, in the specific circumstances, it is advisable to clarify the procedure for executing the order with the bank or the tax authority.
Legal basis: Article 65.6 of the Tax Code and Articles 965.2.2 and 965.2.3 of the Civil Code.
The tax authority has issued an order to freeze funds amounting to AZN 5,000 in the taxpayer’s bank account. The account contains this amount, and the taxpayer wishes to pay an employee’s salary. Is it possible to make the salary payment in this situation?
Under the legislation, if the funds in a taxpayer’s bank account are insufficient to execute the taxpayer’s payment instructions and satisfy all claims made against them, funds are debited from the account in the order of priority established by law.
Pursuant to Article 65.6 of the Tax Code and Articles 965.2.2 and 965.2.3 of the Civil Code, documents providing for the payment of salaries and severance benefits to employees working under employment contracts have priority under the legally established payment order. Once such documents have been executed, funds are debited from the account under payment instructions for transfers to the state budget, the extrabudgetary state funds for compulsory state social insurance and unemployment insurance, the compulsory health insurance fund, and municipal budgets.
This means that when the funds in the account are insufficient to execute all payments simultaneously, salary payments are considered in accordance with the priority order established by law.
However, whether the salary can actually be paid when an order to freeze AZN 5,000 in the bank account is in place depends on the legal nature of the order and the scope of the restriction imposed. Therefore, in the specific circumstances, it is advisable to clarify the procedure for executing the order with the bank or the tax authority.
Legal basis: Article 65.6 of the Tax Code and Articles 965.2.2 and 965.2.3 of the Civil Code.