Russian LLC bankruptcy with tax debts: FTS claims and the director’s action plan

Legal review: 4 October 2026 · Insolvency of commercial companies

This guide is for the director or member of an ordinary Russian LLC. Individuals have different rules: see tax debts in personal bankruptcy. In a corporate case, the Federal Tax Service (FTS) acts as an authorised public body; the arbitrazh court determines bankruptcy.

How much tax debt can trigger LLC bankruptcy?

Under the general rule in Article 6 of Law No. 127-FZ, aggregate qualifying claims against a legal entity must reach RUB 2 million for a case to be initiated, unless the law provides otherwise. Article 3 generally links inability to perform corporate obligations to a failure to pay for three months after the due date. Special debtor categories and particular grounds have their own rules.

For the statutory insolvency indicators, compulsory payments are calculated without fines, late-payment penalties and other financial sanctions under Article 4. A combined balance on a certificate or notice therefore cannot simply be compared with RUB 2 million: its components and other qualifying claims must be examined.

The FTS must also substantiate the claim. Article 6 refers to decisions to collect arrears from money or other assets, or an effective court judgment. Article 7 provides that the authorised body’s right to petition for compulsory payments arises 30 days after the relevant collection decision. This does not mean the FTS necessarily files on day 31: the full conditions and applicable procedure must be assessed.

Should the director wait for the FTS to petition?

No, if the duty under Article 9 has already arisen. Grounds include a situation where paying one creditor makes full payment to others impossible, enforcement against assets would seriously impair or prevent operations, or there are signs of inability to pay or insufficient assets.

In the situations covered by Article 9(1), the application must be filed as soon as possible and no later than one month after the relevant circumstances arise. The clock does not necessarily start with an FTS letter. A liquidation commission has a separate ten-day period when the conditions in paragraph 3 are identified.

Management needs a documented assessment: which obligations are due, what cash and realistically recoverable assets exist, whether payments can be restored and when the problem stopped being temporary. A single account balance is insufficient. See our guide to a corporate debtor’s own bankruptcy application.

How to check FTS debts before choosing a procedure

For each disputed amount, prepare a separate line showing the FTS figure, your supported figure, the reason for the discrepancy and supporting records. “The tax authority calculated it incorrectly” is of little use without calculation and documents. Challenging a tax decision and objecting in a bankruptcy case are related but distinct procedural steps; neither automatically replaces the other.

What to do after the FTS files a petition

1. Obtain the case documents. The petition, calculation, collection records, court order and hearing date.
2. Check the grounds. The qualifying amount, default period, evidence of the claim, decisions and time limits.
3. Prepare the company’s position. Admitted and disputed amounts, proof of payment, financial condition and other creditors.
4. File and serve documents properly. Submit the response and attachments, retain delivery evidence and monitor court orders.

Our corporate response guide explains the content of a response. If the FTS lodges a claim in an existing case, its establishment and status need separate review. Not all tax obligations are alike: Article 5 classification depends on when the obligation arose, rather than merely a later tax demand. The tax period, payment type and applicable exceptions require individual analysis.

See the separate guide to current payments in corporate bankruptcy. Filing a petition does not itself authorise the company to stop keeping accounts, filing mandatory reports or addressing new assessments.

Do an LLC’s taxes become the director’s or member’s personal debt?

The company’s tax debt and management’s personal liability are distinct issues. Arrears alone do not automatically transfer the entire balance to the director. However, subsidiary liability is possible where statutory grounds are established.

Article 61.11 concerns inability to satisfy creditors caused by the acts or omissions of a controlling person and includes statutory presumptions. Harmful transactions, missing or distorted accounts and established tax offences may be relevant. Article 61.12 separately addresses failure to file on time; its scope relates to obligations arising during the period specified by law.

Changing the director, selling a membership interest or ceasing operations does not replace examination of earlier conduct or preservation of records. See subsidiary liability of directors and members. Liability has statutory conditions, evidence requirements and defences: a promise that bankruptcy will eliminate every personal risk is inaccurate.

Documents for an initial review

• an up-to-date debt breakdown and list of disputed assessments;
• collection decisions and court papers;
• a list of all creditors and assets;
• statements and accounting records sufficient to reconstruct cash movements;
• a timeline of financial difficulties and management responses.

Frequently asked questions

Sources and currency

Checked on 4 October 2026 against current provisions of Law No. 127-FZ, reproduced in a legal reference system. Source texts are in Russian:

• Article 3 — indicators, Article 4 — calculation and Article 6 — threshold and proof;
• Article 7 — right to petition and Article 9 — management’s filing duty;
• Article 5 — current payments;
• Article 61.11 and Article 61.12 — liability.