Entrepreneurs will add an article of the Criminal Code

Entrepreneurs will add an article of the Criminal Code

The main tax article in the Criminal Code is 199 "Evasion of payment". The maximum penalty is up to six years in prison. But, as Deputy Head of the Investigative Committee Elena Leonenko told RIA Novosti, often the same acts are qualified under Article 159 "Fraud," here the penalty is up to 10 years in prison. This is especially relevant in cases of illegal VAT refund.


Would it be possible to assume that the law enforcers decided to take out at least tax crimes from under it, thus tying their hands a little? Managing partner of Tax Compliance law firm Mikhail Begunov recently defended a telecom operator accused of tax evasion. The lawyer saw how the investigators had some difficulties with proving, and now believes that the new article will be formulated with a look at practice: "The schemes are so diverse that it is not only knowingly false information, it is also affiliates, price fraud, so-called virtual deductions, paper VAT. Therefore, if tax fraud is singled out separately, they want to paint a more detailed composition in order to lay down the practice of those crimes that they now see. It will already provide for other sanctions than those under Article 199.


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Mikhail Begunov Mikhail Begunov

Mikhail Begunov

Major specialisations

Manufacturing companies, FMCG, Information technology, Pharmaceuticals

Member of the Chamber of Tax Consultants, Lawyer at the Moscow Chamber of Advocates