Article 103. Inadmissibility of Causing Unlawful Damage While Exercising Tax Control

1. In exercising tax control, causing unlawful damage to taxpayer, duty payers, the tax agent or to their representatives or property held in their possession, use, or disposal shall be inadmissible.

2. Damage done by unlawful actions of tax authorities or their officials in exercising tax control shall be subject to full compensation, including the compensation for loss of expected gains (missing/unearned profit).

3. For causing damages to the taxpayer, the tax agent or their representatives by their unlawful actions, tax authorities and their officials shall be held liable under federal laws.

4. Damages done to the taxpayer, the tax agent or their representatives by lawful actions of tax officials shall not be subject to compensation, except in cases set forth in the federal laws.

Article 104. Statement of Claim for Collecting a Tax Sanction

1. Having rendered a ruling on bringing the taxpayer (or other obligor) to responsibility for a tax offence, the respective tax authority files a lawsuit with a court for the collection of the tax sanction established under the present Code from the person being brought to responsibility for committing the tax offence.

Prior to filing a lawsuit with a court, the tax authority shall advise the taxpayer (or other obligor) to pay the amount of the tax sanction voluntarily.

If the taxpayer (or other obligor) refuses to pay the amount of the tax sanction voluntarily or does not make the payment within the time limit stated in the demand for payment, the tax authority shall file a statement of claim at court for the collection of the tax sanction established under the present Code for committing the tax offence.

2. Lawsuits/petitions for collecting tax sanctions from organisations or individual entrepreneurs are filed with an arbitration court, and [lawsuits/petitions for collecting tax sanctions] from individuals other than individual entrepreneurs - with a court of general jurisdiction.

Attached to the statement of claim shall be the protocol of the tax offence and other materials of the case produced in the course of the tax audit.

3. If necessary, along with filing a statement of claim for collecting the tax sanction from the person being brought to responsibility for committing the tax offence, the tax authority can file a motion at court to secure the claim in the order envisaged by the civil procedure legislation of the Russian Federation and by the arbitration procedure legislation of the Russian Federation.

4. The rules of this Article shall also apply in case of calling a taxpayer to account for breaking the legislation on taxes and dues in connection with the shifting of goods across the customs border of the Russian Federation.

Article 105. Hearing of Cases and Execution of Rulings to Collect Tax Sanctions

1. Cases for collection of tax sanctions instituted by tax authorities against organisations or individual entrepreneurs shall be tried by courts of arbitrage pursuant to the law of arbitral procedure of the Russian Federation.

2. Cases for collection of tax sanctions instituted by tax authorities against natural persons other than individual entrepreneurs shall be tried by courts of general jurisdiction pursuant to the law of civil procedure of the Russian Federation.

3. Execution of effective court rulings on collecting tax sanctions shall be performed pursuant to the Russian Federation law of final process.