Conducting targeted auctions

According to order No. 571 from 10.10.2013 of the Ministry of Revenue and Duties of Ukraine, there was approved the procedure for conducting targeted auctions for sale of property of the taxpayer pledged as a tax lien. The procedure provides that not all the property can be set for a targeted auction in the event of a tax dispute, the exceptions are: property which may be grouped and standardized; short-life products, as well as other property, the amount of which is not sufficient for auction; securities. Sale of property of above mentioned categories is conducted on closed auctions, which are held on a competitive basis. Sale of property on the stock exchange is conducted on the basis of an agreement between the authorities of the Ministry of Revenue and Duties of Ukraine and commodity exchange. The authorities of the Ministry also set the initial price of products on the basis of the law of Ukraine “On the assessment of property, property rights and professional valuation activities in Ukraine”. Those wishing to participate in the auction must apply to the auction organizer in writing, also one is to remember about the registration fee the amount of which shall not exceed one taxable minimum income of citizens, as well as a participant contributes 10 % of the starting price of the lot. The participant has the right to refuse to participate in the auction, but it is necessary to inform the organizer of the auction no later than one business day before an auction. The procedure of an auction: Disposal of property is carried out with the participation of no less than 2 buyers; An auction is organized by the auctioneer appointed directly by the auction organizer; Readiness to purchase goods is shown in two ways: а) offering a price without voice (to raise an auction card); б) offering a price verbally, but the price should be at least one bid increment bigger than an auction price and be surely divisible to this bid increment; An auctioneer has the right to change the price during the auction in the manner determined by the calculation scale of the bid increment. An auctioneer has the right to remove an item from the auction without explanation before the sale at the request of the seller. Transfer of property purchased by the buyer as a result of bidding at the auction, can be conducted in terms and conditions specified in the contract. Dear visitors of our website, you can contact the experts of “COLARES” for advice on the procedure of an auction, as well as in cases of disagreement about the price set on the part of the taxpayer whose property is set for auction.