Tax evasion: what is the responsibility?

"Taxes are a part of one's own property, which is allocated to the benefit of the state by its citizens in order to calmly use everything else." Charles L. Montesquieu

The existence of a system of taxation and financial control is almost one of the main features of a modern state.

Indeed, it is difficult to imagine a modern, developed state in which the taxation apparatus is completely absent, because historically taxes are the main means of filling the state treasury. That is why, in order to ensure the budget filling process, financial control bodies and mechanisms were introduced and developed in the countries.

As of now, Ukraine has implemented a system based on a subjective assessment by taxpayers of their actions by distinguishing non-payment of taxes due to certain circumstances (excluding willful non-payment of taxes) from deliberate tax evasion. Let's stop at a more severe act.

To date, tax evasion, which is committed intentionally, is defined as a criminal offense, the responsibility for which is provided for by Article 212 of the Criminal Code of Ukraine, albeit under the condition of underpayment to the State and local budgets of taxes and fees in the amount of 4,542,000 hryvnias. This amount is defined as the threshold for bringing people to criminal liability for willful tax evasion in 2024. This amount can consist of one tax, for example, value added tax, or different ones, which in total will give the amount of tax debt exceeding UAH 4,542,000.

Important: the amount of unpaid taxes for criminal liability under Art. 212 of the Criminal Code cannot include the amount of the single social contribution (SSC), since the latter is not included in the system of taxes and fees and is qualified separately in the criminal legislation.

The basis for the initiation of criminal prosecution in the vast majority are tax notices - decisions issued by the bodies of the State Tax Service, the amount of the tax debt for which has been agreed, in accordance with the provisions of the tax legislation. Although in the conditions of today's realities, law enforcement officers resort to other methods of determining the amounts of non-receipt of funds to the budget, thereby creating a kind of conflict in which the tax debt has not yet arisen, and the amount of non-receipt of funds to the budget has already been established. Under such circumstances, the business entity should understand the legal nature of the tax debt and distinguish it from the probable non-payment of funds to the budget in order to prevent violation of its rights and restoration of already violated ones.

Timely involvement of a professional team in the case ensures reliable protection of your rights and interests.

Law office "Prikhodko&Partners" is ready to ensure the protection of your rights and your business in terms of both tax and criminal aspects of prosecution and accusation of tax evasion.