Bank account garnishment and tax enforcement by ANAF: what the tax authority can do and what you can challenge

This article aims to explain, in accessible language:

• how ANAF gets from a tax arrear to a summons and then to bank account garnishment and enforcement against assets;
• what the legal framework is for tax enforcement (Title VII of the Fiscal Procedure Code – Law no. 207/2015^[1]);
• what the differences are between tax enforcement and civil enforcement (through bailiffs);
• what deadlines apply and what remedies you can use (tax enforcement challenges, administrative appeals, court actions);
• what the lawyer’s role is in challenging tax enforcement and in negotiations with ANAF.

We will constantly refer to specific provisions of the Fiscal Procedure Code, to ANAF guides and to useful resources for those who want to go deeper into the topic.

1. The legal framework of tax enforcement

Tax enforcement is primarily regulated by Title VII – Extinction of tax liabilities of the Fiscal Procedure Code^[1], with emphasis on the chapter on enforcement (art. 226 and following). A synthetic overview of these provisions can also be found in updated versions of the Code published on specialised platforms such as Lege5^[2].

In short, the Fiscal Procedure Code regulates:

• what tax liabilities can be enforced (taxes, duties, contributions, accessories – interest and penalties);
• what a tax assessment instrument is (for example, a tax assessment decision or a tax return filed by the taxpayer) and when it becomes an enforceable title (art. 226 FPC^[3]);
• how enforcement is initiated (through the summons – art. 230 FPC^[4]);
• what the forms of enforcement are: garnishment of cash amounts (art. 236 FPC^[5]), enforcement against movable and immovable property etc.;
• how interest and late-payment penalties are calculated (for example, interest of 0.02%/day and late-payment penalty of 0.01%/day – art. 173–175 FPC and art. 176 FPC^[6]).

ANAF has also published explanatory materials, such as the brochure “Extinction of tax liabilities through enforcement” and leaflets on enforcement through garnishment, available on the websites of regional directorates or in the section on current guides and information materials^[7].

2. From arrear to summons: when tax enforcement starts

2.1. Tax assessment instrument and enforceable title

In tax matters, the first step is the birth of the tax liability, usually through:

• a tax assessment decision issued by the tax authority (for example, following a tax inspection or a desk-based verification);
• a tax return filed by the taxpayer (your own declaration of corporate income tax, VAT, income tax etc. – followed by non-payment by the due date).

These instruments are tax assessment titles. Under certain conditions, they become enforceable titles, within the meaning of art. 226 of the Fiscal Procedure Code, which means that ANAF can start enforcement without first obtaining a court judgment.^[3]

After the due date, if the debt is not paid, interest and penalties start to accrue, as set by law. A practical summary of the applicable rates (0.02%/day interest, 0.01%/day late-payment penalty) can be found in specialised guides for taxpayers.^[6]

2.2. The summons – the first enforcement act

According to art. 230 FPC, enforcement starts by issuing and serving a summons on the debtor.^[4] The summons is, in tax enforcement, the equivalent of an official “final warning” that, if you do not pay within the term, ANAF will proceed to bank garnishment and other forms of enforcement.

The summons must contain, at least:

• the identification data of the debtor (company or individual);
• the legal basis of enforcement (reference to the Fiscal Procedure Code and to the tax assessment instrument);
• the amounts owed (principal and accessories);
• the 15-day time limit for payment from the date of service, according to art. 230 para. (1);
• a statement that if the debt is not paid or mediation is not notified, enforcement will continue.

Official templates for tax summons are found in annexes to ANAF orders (for example Annex 7 – Summons UIR^[7]) and are used both by ANAF and by some local tax authorities. The 15-day time limit is often expressly mentioned in summonses or in information materials on enforcement.^[7]

Important: the summons is, in principle, the first enforcement act. If you consider it unlawful (for example, it refers to a prescribed or wrongly calculated debt), it can be challenged by a tax enforcement challenge within the time limits provided by the Code (see the section on remedies).

2.3. Mediation in tax enforcement

In recent years, ANAF has introduced the possibility of a mediation procedure, through which the taxpayer can discuss with the tax authority the situation of outstanding liabilities and the possibility of instalment payment or re-scheduling, even after the summons has been served. ANAF materials on enforcement through garnishment expressly mention that if, within 15 days from service of the summons, the debtor neither pays the debt nor notifies the intention to start mediation, enforcement continues.^[7]

In practice, mediation can be used to avoid a complete freeze of accounts, by negotiating an instalment plan under art. 184 and following of the Fiscal Procedure Code, or to clarify any errors before they turn into garnishments and seizures.

3. Bank account garnishment: how it works and what limits apply

3.1. What is tax garnishment

Garnishment is the form of enforcement by which ANAF targets cash amounts held by the debtor in bank accounts or owed to them by third parties (banks, employers, clients). According to art. 236 FPC, any enforceable sums representing income and cash balances in RON and foreign currency, securities or other intangible movable assets held by third parties for the debtor are subject to garnishment.^[5]

ANAF has explained this procedure in a dedicated information material on garnishments, detailing who the garnished third parties are, what amounts can be enforced and how garnishment is lifted after payment or instalment.^[7]

3.2. Bank garnishment – why all accounts are blocked

In practice, the most common form of enforcement is bank garnishment. The procedure, in broad terms, is as follows:

1. After the 15-day time limit in the summons has expired, if the debt is not paid and no mediation or instalment has been initiated, the tax authority issues garnishment notices to all credit institutions where the debtor holds accounts.
2. Banks are obliged to freeze available amounts up to the amount of the debt stated in the notice and to transfer the amounts to the budget, under the conditions set out in the ANAF procedure on the application of garnishments^[8].
3. The freeze is generally simultaneous on all accounts, which explains why the taxpayer sees “frozen accounts” in parallel, even if the debt is relatively small.

In recent years, ANAF has been required, through internal orders, to manage bank garnishments with greater efficiency – i.e. not to exceed the amounts stated in the notice and to lift the garnishment quickly after the debt has been settled, as emphasised, for example, in Order no. 878/2022^[8].

3.3. Garnishment of wages and other income

Garnishment does not only target bank accounts, but also current income such as wages or pensions. In this case, the rules on protection of income (for example, the limits up to which wages can be garnished) are taken from the Civil Procedure Code, which applies in addition to the Fiscal Procedure Code under art. 2 para. (2) FPC.^[1]

As a rule, part of the wage is not subject to enforcement, in order to ensure a minimum subsistence level. The employer, as garnished third party, is obliged to withhold from the wage the enforceable part and transfer it to ANAF, within the limits provided by the Civil Procedure Code and labour law.

3.4. Lifting garnishment

Bank and income garnishments are not “for life”. They can be lifted in several situations:

• when the debt is fully settled (principal and accessories);
• when an instalment plan is approved and its conditions involve lifting garnishment (at least partially), under art. 184 and following of the Fiscal Procedure Code;^[1]
• when the court orders suspension of enforcement or annulment of enforcement acts (following an enforcement challenge);
• when errors are identified (for example, garnishment for an amount that does not belong to you or for a debt already prescribed or extinguished).

In practice, one of the major problems is the delay in lifting garnishment after payment has been made or a challenge has been upheld. This is why orders such as O.P.A.N.A.F. no. 878/2022 insist on the obligations of tax authorities to act quickly at this stage.^[8]

4. Enforcement against assets: movables, immovables and other rights

If garnishment does not cover the entire debt, ANAF may resort to enforcement against the debtor’s movable and immovable property. The Fiscal Procedure Code sets out, in Title VII, detailed procedures on:

• attachment of movable property (cars, equipment, stock, merchandise), followed by sale;
• attachment and enforcement of immovable property (apartments, houses, land), including entries in the land register and sale by auction;
• enforcement of other patrimonial rights (for example, shares in companies).

The procedure for enforcement against assets is broadly similar to civil enforcement (through bailiffs), but with important particularities:

• it is carried out by the tax authority, not by a bailiff; ANAF has its own enforcement departments;
• rules on the priority of extinction of tax liabilities apply (principal first, then accessories, in order of the age of liabilities);^[2]
• there are special rules on the valuation and sale of assets, the auction procedure and the distribution of proceeds.

ANAF explains these mechanisms in brochures such as “Extinction of tax liabilities through enforcement” and in materials published on the institution’s website, explaining the stages of attachment and sale of movable and immovable property.^[3]

5. Tax enforcement vs. civil enforcement: similarities and differences

Many taxpayers confuse tax enforcement with ordinary civil enforcement (for example, for bank debts or between private parties). Although both aim to recover a debt, the differences are important:

5.1. Who enforces

• in tax enforcement, the creditor is the state (through ANAF or local authorities), and the procedure is managed by the tax authority, on the basis of the Fiscal Procedure Code;
• in civil enforcement, the creditor is usually a private person (bank, supplier, landlord etc.), and enforcement is carried out by a bailiff, on the basis of the Civil Procedure Code.

5.2. The enforceable title

• in tax matters, the enforceable title is usually a tax assessment decision or the taxpayer’s own tax return; no prior court judgment is needed;^[3]
• in civil matters, the enforceable title is usually a court judgment or another instrument recognised by law as enforceable (loan agreement, promissory note, notarised contract etc.).

5.3. Remedies and competent courts

• in tax enforcement, the tax enforcement challenge is usually heard by the administrative-tax sections of tribunals or courts of appeal, under the Fiscal Procedure Code and Law no. 554/2004 on administrative litigation^[9];
• in civil enforcement, the enforcement challenge is heard by the civil courts (the district court for the area where enforcement takes place), under the Civil Procedure Code.

5.4. The regime of accessories

In tax matters, interest and penalties are regulated in detail and are applied at standard levels (0.02%/day interest, 0.01%/day late-payment penalty) to all tax liabilities administered by the central tax authority.^[6] This “mathematics of accessories” can make a debt grow rapidly if it is not challenged or paid in due time.

In civil enforcement, the regime of accessories depends on the contract and on other special rules (for example, penalty interest in a loan agreement), not on the Fiscal Procedure Code.

6. Deadlines and remedies: what you can challenge in tax enforcement

In tax enforcement it is essential to distinguish between:

• challenging the tax liability itself (i.e. the substance of the debt – tax assessment decision, method of tax calculation);
• challenging enforcement (i.e. the way in which ANAF recovers the debt – summons, garnishment, attachment etc.).

6.1. Challenging the tax liability – administrative appeal

The tax liability (for example, a tax assessment decision) is challenged by way of administrative appeal, under Title VIII of the Fiscal Procedure Code. The general time limit is 45 days from the date of service of the act, according to art. 270 FPC.^[10]

As a rule, only after exhausting this administrative procedure can you bring proceedings before the administrative-tax court, under Law no. 554/2004.^[9] On this topic, you can read a dedicated article on the costs and stages of an administrative-tax court case, including disputes with ANAF and local authorities: What costs to expect in an administrative-tax court case…^[11]

6.2. Challenging enforcement – tax enforcement challenge

Tax enforcement (the summons, garnishment notice, attachment record etc.) can be challenged by a tax enforcement challenge, under art. 260–261 FPC.^[12]

The main points are:

• General time limit: 15 days from the date when you became aware of the enforcement act you are challenging (for example, the summons or the garnishment notice). The time limit is a preclusive period, meaning that if you miss it, you lose the right to challenge that specific act.
• Competent court: usually the administrative-tax section of the tribunal or court of appeal, depending on value and the special provisions of the Code.^[9]
• Scope of the challenge: you can invoke both irregularities in enforcement (for example, garnishment for an amount higher than the debt, failure to serve the summons) and grounds concerning the very existence of the liability (limitation, prior payment, lack of an enforceable title), subject to certain limits.

Templates for such challenges and references to the 15-day time limit can be found in annexes to ANAF enforcement orders and in summonses issued by tax authorities.^[12]

6.3. Suspension of enforcement

Filing an enforcement challenge does not automatically suspend enforcement. To avoid immediate effects (for example, frozen accounts, sale of assets), you have two main avenues:

• you can request the tax authority to grant an instalment plan or other facilities (deferral, partial cancellation of accessories, under certain conditions), under Title VIII of the Fiscal Procedure Code;^[1]
• you can file with the court a request to suspend enforcement of the tax administrative act (the tax assessment decision or other acts), under art. 14–15 of Law 554/2004, if you can show a strong prima facie case and imminent damage.

In practice, the combination of a tax enforcement challenge, an action for annulment of the tax assessment instrument and a possible suspension request must be strategically designed with a lawyer, in order to maximise the chances of stopping abuses and avoiding a total shutdown of your activity.

7. The lawyer’s role in tax enforcement

Tax enforcement is not just a series of administrative acts; it is a complex procedure subject to the control of administrative-tax courts. A lawyer specialising in tax litigation can intervene at several key moments:

• before enforcement – analysing the tax situation, checking limitation periods, identifying errors in assessment decisions, advising on instalments or voluntary payment;
• immediately after receipt of the summons – assessing whether to file an enforcement challenge, analysing the chances of a suspension request, advising on communication with ANAF;
• during garnishment – discussions with the tax authority and banks, checking the correctness of garnished amounts, preparing supporting documentation (proof of payments, financial statements etc.);
• in court – drafting the enforcement challenge and the action to annul the tax acts, representing you before the courts, managing evidence (tax expert reports, account statements, correspondence with ANAF).

Especially for entrepreneurs, tax enforcement can be a matter of business survival. Simultaneous garnishment of accounts and seizure of essential assets can paralyse operations, even for debatable or relatively small debts. In such situations, a lawyer experienced in tax and administrative litigation can make the difference between a difficult but manageable moment and a crisis leading to closure or insolvency.

8. Conclusions

Bank account garnishment and tax enforcement are powerful tools in ANAF’s hands to recover tax liabilities quickly. They are not, in themselves, abusive – but they become extremely dangerous when the taxpayer does not know their rights, deadlines and options.

A few key points:

• The summons is the first enforcement act; after 15 days, ANAF can proceed to garnishment and attachment.^[4]
• Bank garnishment can freeze all accounts simultaneously, but there are limits and procedures for lifting it after payment, instalment or a successful challenge.^[5]
• Tax interest and penalties make the debt grow fast, which is why it is important to act early, not only after your accounts have been frozen.^[6]
• The debt itself (the tax assessment instrument) is challenged by administrative appeal (45 days), while enforcement acts are challenged by enforcement challenge (15 days); confusing the two procedures can be very costly.^[10][12]
• In parallel, there are tools such as instalment plans, suspension requests and mediation, which can be used to limit negative effects on the business or personal income.

Tax enforcement is not a “fate”, but a legal procedure that can be negotiated, challenged and sometimes annulled – provided that you react quickly, in an informed manner and, ideally, with specialised support.

FAQ – Frequently asked questions on bank garnishment and tax enforcement

Question 1: Can ANAF block all my bank accounts?

Yes. In tax enforcement by garnishment, ANAF sends garnishment notices to all banks where you hold accounts. Banks are obliged to freeze available amounts up to the amount of the debt. In practice, you may find that all your accounts are frozen. However, garnishment cannot exceed the total debt and must be lifted after the liability is settled or after an instalment plan has been approved.

Question 2: What time limit do I have to challenge ANAF’s garnishment or summons?

As a rule, you have 15 days from the date when you became aware of the enforcement act (summons, garnishment notice, attachment record) to file a tax enforcement challenge, under art. 260–261 of the Fiscal Procedure Code. This is a preclusive time limit – if you miss it, you generally lose the right to challenge that act.

Question 3: Does enforcement stop if I file a challenge?

Not automatically. Filing an enforcement challenge does not suspend enforcement by itself. To stop enforcement, you must either obtain an instalment plan or other facility from ANAF or file with the court a request to suspend enforcement of the tax administrative act (for example, the assessment decision), under Law no. 554/2004, if legal conditions are met.

Question 4: Can I challenge the debt itself, not just garnishment?

Yes, but through a different procedure. The tax liability (for example, an assessment decision) is challenged by administrative appeal to the issuing tax authority, within 45 days from the date of service, under the Fiscal Procedure Code. Challenging enforcement (summons, garnishment) does not replace this procedure; it only complements it.

Question 5: Are there amounts or assets that cannot be enforced by ANAF?

Yes. The Fiscal Procedure Code, together with the Civil Procedure Code, provides for certain non-enforceable assets and income or income that can be enforced only up to certain limits, such as part of wages, certain special-purpose allowances or essential assets needed for living and for exercising a profession. The situation must be analysed case by case.

Question 6: Is it useful to hire a lawyer in the tax enforcement stage?

In most cases, yes. A lawyer specialising in tax and administrative litigation can quickly identify errors (limitation, wrong calculation, lack of service of acts), choose the right remedy (enforcement challenge, action to annul the tax assessment instrument, suspension request), manage communication with ANAF and represent you in court. The earlier they intervene, the higher the chances of limiting the negative effects of enforcement.