I would like to know about payment of state duty when referring to Arbitration Court. Whether it is possible to delay, pay by instalments such state duty and to refund it?

By virtue of article 5 of the Federal law of the RF "On State Duty" the Arbitration Court may delay or allow payment by instalment of state duty or reduce its size based on the property status of the parties.

It is stated in the Regulation of the Plenum of the Supreme Arbitration Court of RF dated 20.03.96 No 6, that "delay or payment by instalment of state duty and reduction thereof may be effected by a written petition of the party concerned. The appropriate reasons proving that the property status of the party concerned does not allow payment of state duty in the established size shall be stated in the petition when filing the statement of claim. The documents evidencing the property status of the party concerned comprise the following:"

1. The list of settlement and other accounts, names and addresses of the banks and other lending institutions where such accounts are opened (including the accounts of branches and representative offices of a legal entity - the party concerned).
2. Information confirmed by the bank (banks) that there are no funds in the relevant account (accounts) in the amount required to pay the state duty and also about the overall liability of the account holder under enforcement orders and payment documents. The documents with information on the funds available on the account (accounts) shall be attached to the petition requesting the reduction of the size of the state duty.
3. Submission of documents confirming the claimant's (applicant's) application, person who files the appeal or petition for review to banks and other organizations for obtaining the borrowed funds, and also evidencing the lack of liquid assets of the same (should such be sold), the amount of monies may be received to pay the state duty, are not required.

The petition to delay or to allow payment by instalment of state duty or a reduction of its size may be satisfied by the Arbitration Court only in those instances when the documents produced confirm the lack of the funds in bank accounts of the amounts which are required to pay the state duty. If there are no such documents, the petition may not be satisfied.

The Arbitration Court cannot, at its own discretion, reject to delay or allow payment by instalment or reduce the size of the state duty if there are objective reasons to satisfy the petition.

If there is a petition to delay or allow paying by instalments of the state duty, the statement of claim (statement), appeal or petition for review cannot be returned under the pretence of unsettlement of the state duty. If the petition concerns the reduction of the size of the state duty, the statement of claim (statement), appeal or petition for review shall be paid by the state duty in the remaining part.

If the statement of claim (statement), appeal or petition for review are taken, the consideration of the petition to delay or allow payment by instalment of the state duty and reduction of its size shall be made by the sole arbitrator in the appropriate instance.

If the petition is satisfied, this fact shall be stated in the ruling confirming taking of the statement of the claim (statement), appeal or petition for review, refusal to satisfy the petition - in the ruling on dismissing the statement of claim (application), appeal or petition for review.

The ruling on dismissal of the statement of claim (application), appeal or petition for review related to the refusal to satisfy the petition may be appealed under general terms in compliance with articles 108, 151, 168 of the Arbitration Procedural Code of the Russian Federation.

In those instances, when there is granted a delay or payment by instalment of the state duty, if the party did not produce the documents to the date of hearing, which confirm the payment of the state duty, the issue of recovery of the state duty from the correspondent party shall be settled by the arbitration court by decision-making, making a ruling or by decree. If the arbitration court satisfies the claim (appeal), the state duty shall be recovered from the other party directly into the federal budget revenue. If there is a refusal to satisfy the claim (appeal), the state duty shall be recovered to the federal budget from the party, who is granted a delay or payment by instalments of the state duty".

Awarding of Expenses for the State Duty and Its Refunding

It is pointed out in the regulation of the Plenum of the Supreme Arbitration Court of RF dated 20.03.96 No6 that "deciding the issue pertaining to distribution of expenses for the state duty, the arbitration court should be governed by part I article 95 of the Arbitration Procedural Court of the Russian Federation under which the state duty shall be borne by the parties involved in the case, to the extent of the claims satisfied. However, it is provided for under part 3 of said article of the Code that should a case arise as a result of the party's violation of a pre-trial (complaint procedure) rule for settlement of a dispute, the arbitration court has the right to award expenses for the state duty to the party regardless of the event. If a pre-trial (complaint procedure) for settlement of a dispute is not provided for, the arbitration court, provided that the respondent satisfies the claim voluntarily upon filing of the claim, should consider the issue of awarding expenses for the state duty to the appropriate party pursuant to part 1 article 95 of the Code with a due regard of the fact that the claimant's claims are actually met".

Pursuant to article 6 of the Law of the RF "On State Duty" the state duty paid shall be refunded in part or in full in the instances when the statement, appeal or any other petition to courts are dismissed or returned; termination of the proceedings in respect of the case or if the claim was not considered, should the dispute be not subject to consideration in court of general jurisdiction or arbitration court and also when the claimant has failed to observe the established pre-trail (complaint procedure) rule for settlement of the dispute with the respondent; satisfaction of claim by the arbitration court, should the respondent be released from payment of the state duty pursuant to sub-clause 5 clause 3 article 5 of the Law "On State Duty".

Refunding of state duty paid to the federal budget shall be made under applications submitted to the tax authority during a year from the date when the appropriate judicial decision was taken. The state duty to be paid shall be released to a legal entity within one month after the decision to refund was approved by the appropriate financial or tax body.