If the recipient of a refund has unpaid taxes, the Tax Administration will offset the refund; in other words, use it to settle the unpaid taxes. We can also use the refund for settling any third-party tax debts the recipient may be liable for. If such an offset is decided upon, we always notify both the taxpayer who is the original recipient of the refund and the party who receives the offset.
In some circumstances, the Enforcement Agency may impose a distraint on a refund. If the Agency decides to do so, they notify the taxpayer.