Criminal liability for violation of tax legislation

According to the current legislation, namely the Tax Code of Ukraine, violation of the legislation in this area involves the application of not only financial and administrative, but also criminal liability. The extent of the application of restrictive measures depends on the composition of the illegal behavior and the degree of public danger of such activity. For example, criminal liability for violation of tax legislation is provided for evasion of taxes and fees. Such actions are subject to sanctions under Article 212 of the Criminal Code of Ukraine (hereinafter referred to as the CCU). If you are accused under this article, you will definitely need legal support from qualified lawyers. The specialists of our law firm “Prykhodko & Partners” are ready to help you with this.

Violation of tax legislation: in what cases is criminal liability threatened?

To begin with, it is worth noting that criminal proceedings related to violation of tax legislation have their own specifics. For example, as part of the implementation of investigative actions, searches may be conducted, material assets and documents may be seized from the taxpayer, company directors or contractors. In addition, property may be seized and interrogations may be conducted. Such actions may provoke the destruction of the business reputation of even conscientious taxpayers.

It should be remembered that in some cases, the reason for initiating proceedings under Article 212 of the Criminal Code is the preparation by employees of the Bureau of Economic Security of an “analytical report”, which will contain an analysis of the Unified Register of Tax Invoices. In what cases can an individual or legal entity be subject to criminal liability? Let’s clarify this issue based on the analysis of Article 212 of the Criminal Code.

• Part One.

The legislator provides for punishment for:

1. Intentional failure to pay mandatory payments (taxes, fees, etc.).
2. Commission of the specified actions by an official.
3. Actions that provoked the non-receipt of funds to the budget in significant amounts.

Punishment: fine - up to 2,000 non-taxable minimum incomes of citizens (hereinafter - NMI), restriction of professional activity - up to three years.

• Part Two.

Part two defines the punishment for the above-mentioned actions accompanied by aggravating circumstances, namely: committed by a group of persons in a prior conspiracy; led to the non-receipt of funds to the budget in a large amount.

Such actions provide for an increased fine of up to 3,000 NMD and a ban on engaging in professional activities.

• Part three.

The actions specified in the previous articles, which have aggravating circumstances: committed by a person who was previously convicted of evading mandatory payments; led to the fact that funds were not received in the state budget in particularly large amounts.

Liability: fine of up to 25,000 NMD, restriction on engaging in professional activities for up to 3 years, confiscation of property.

Parts four and five of Article 212 of the CCU indicate the conditions under which a person is exempted from prosecution by investigative bodies and the court: payment of fees, taxes until the person is brought to criminal liability; compensation for damage caused to the state by untimely payment of taxes (fines, sanctions). Part five deals with the taxpayer's achievement of the so-called "tax compromise" (Chapter XX "Transitional Provisions" of the Tax Code).

Thus, criminal liability of an individual or legal entity for intentional failure to pay mandatory payments occurs in the event of non-receipt of a significant amount of money to the state budget (from 3,000 NMDC).

Support from a lawyer in cases related to tax law violations

If you are accused under Article 212 of the Criminal Code of Ukraine, an important step will be to contact a professional lawyer who has thorough knowledge of the current Tax Code of Ukraine and the practice of protecting the interests of suspects under this article in court. The lawyers of our law firm “Prykhodko & Partners” meet these requirements.

We provide advice in offline and online formats, all for the convenience of our clients! Our lawyers promptly travel to the place of investigative actions - searches, interrogations, etc. All you need to do is sign an agreement to ensure comprehensive representation of your interests by a lawyer from our office.

One of the advantages of working with lawyers "Prykhodko & Partners" is an individual, comprehensive approach. If necessary, we can appeal the decisions of tax authorities in court. Our lawyers work for results!

Do you have any more questions? We are waiting for a preliminary consultation in a format convenient for you (offline or online)! To calculate the cost of a lawyer's services on articles on violations of tax legislation, fill out the form below.