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null Before signing the agreement, we performed checks concerning the contractor’s obligations, and concluded that the contracting partner has taken care of their obligations. Now, in the course of the same contract, the subcontractor submitted a report showing some taxes haven’t been paid. Can we pay the subcontractor’s invoice even though they’ve accrued tax debt during the contractual relationship?

Before signing the agreement, we performed checks concerning the contractor’s obligations, and concluded that the contracting partner has taken care of their obligations. Now, in the course of the same contract, the subcontractor submitted a report showing some taxes haven’t been paid. Can we pay the subcontractor’s invoice even though they’ve accrued tax debt during the contractual relationship?

Contractor's obligations and liability
The contactor must perform checks concerning contractor’s obligations before signing an agreement, and these reports and certificates must be kept by the contractor for at least two years after the work concerned has been completed. Even if subsequently submitted reports during the contractual relationship showed non-compliance with legal obligations, the contractor cannot, on the basis of the Act on the Contractor’s Obligations and Liability when Work is Contracted Out, fail to pay the invoices. The payment of invoices, as well as other contractual obligations, is determined by an agreement between the parties.
21 Sep 2020