Attorney
An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.
Case: Successful support of a client in a case under Part 3 of Article 212 of the Criminal Code of Ukraine for intentional evasion of taxes and fees in especially large amounts
A client, the director of a company, contacted the lawyers of the Tax Practice of “Prikhodko&Partners” Law Firm. Detectives from the State Bureau of Economic Security of Ukraine were conducting a pre-trial investigation under Part 3 of Article 212 of the Criminal Code of Ukraine.
The legal qualification of which was that our client, through his deliberate actions, which resulted in the evasion of value-added tax in the amount of 46 million UAH, led to the actual non-receipt of funds to the state budget in especially large amounts.
During the course of providing legal assistance, the lawyers of “Prikhodko&Partners” Law Firm, thoroughly reviewing the case materials, and subsequently developing a legal position and evidence base that refutes the unfounded charges of the Economic Security Bureau detectives.
Subsequently, the lawyers of “Prikhodko&Partners” Law Firm carefully prepared and gradually provided evidence (witness testimony, primary and accounting documents, expert opinions, etc.) in the materials of the criminal proceedings, which ultimately became the basis for a significant reduction in the amount of VAT evasion with which the director was charged.
The next step was to explain to the client the possibility of avoiding any liability – since Part 4 of Article 212 of the Criminal Code of Ukraine allows for avoidance of punishment and a person is exempt from criminal liability if taxes and fees have been paid before being brought to criminal responsibility.
In this way, the director of the enterprise did not suffer any punishment, and the criminal proceedings were closed on the basis of a court ruling, which also makes it impossible to repeat attempts to bring the director to criminal responsibility for these violations.
- Intentional evasion of taxes, fees (mandatory payments) included in the tax system introduced in the manner prescribed by law, committed by an official of an enterprise, institution, organization, regardless of the form of ownership, or a person engaged in entrepreneurial activity without creating a legal entity, or any other person who is obliged to pay them, if these actions led to the actual non-receipt of funds in significant amounts to budgets or state target funds, is punishable by a fine of five thousand to ten thousand non-taxable minimum incomes of citizens with or without deprivation of the right to hold certain positions or engage in certain activities for a period of up to three years.
- The same acts committed by prior conspiracy by a group of persons, or if they resulted in the actual non-receipt of funds in large amounts to budgets or state target funds, shall be punishable by a fine of ten thousand to fifteen thousand non-taxable minimum incomes of citizens with deprivation of the right to hold certain positions or engage in certain activities for a period of up to three years.
- The acts provided for in parts one or two of this article, committed by a person previously convicted of evading taxes, fees (mandatory payments), or if they resulted in the actual non-receipt of funds in especially large amounts to budgets or state target funds, shall be punishable by a fine of fifteen thousand to twenty-five thousand non-taxable minimum incomes of citizens with deprivation of the right to hold certain positions or engage in certain activities for a period of up to three years with confiscation of property.
- A person who has committed the acts provided for in parts one and two of this article, or the acts provided for in part three (if they resulted in the actual non-receipt of funds in especially large amounts to budgets or state target funds) of this article, shall be exempt from criminal liability if, prior to being brought to criminal liability, taxes and fees (mandatory payments) were paid, and the damage caused to the state by their late payment (financial sanctions, penalties) was compensated.
In this case, the firm’s attorneys provided a comprehensive defense for the client in a case of large-scale tax evasion. They conducted a detailed analysis of the client’s financial and business transactions, verified the validity of the tax authority’s findings, and gathered evidence refuting the existence of a violation. As a result, they successfully defended the client’s position and minimized the risk of liability.
This case confirms that timely legal assistance plays a key role in tax disputes. Contacting a lawyer early on allows you to develop a sound defense strategy, avoid critical mistakes, and gather the necessary evidence. A professional approach significantly increases the chances of a successful outcome and the protection of your business’s interests.
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