PROTECTION
from criminal prosecution for tax evasion (article 212 of the Criminal Code)

Having many years of experience in defending clients in disputes with tax authorities, as well as in the implementation of protection in criminal proceedings, on tax evasion, we analyzed the actions of regulatory and law enforcement agencies and we see that criminal prosecution under Article 212 of the Criminal Code is often either far-fetched or premature. Very often, this is one of the tools of pressure on business.

Despite the gradual reduction of pressure on business through the liberalization of criminal legislation and raising the lower bar, which allows a person to be held criminally liable, there is no hope that the pressure on business will decrease significantly.

Whom might it concern?

First of all, this is the director of the company, chief accountant or other person indicated as responsible for maintaining tax and accounting records. And if the company’s income provides for the possibility of paying taxes in the amount of about three million hryvnias (regardless of the period of the company’s activity), then the officials of such a company have every chance of becoming the object of close attention of regulatory and law enforcement agencies.

At what stage should you think about protection from criminal prosecution?

In fact, there are actually two options to fall under criminal prosecution for tax evasion:

• the first one is a tax audit → an act with an additional tax charge → a tax notice-decision → transfer of the results of the audit to law enforcement agencies → the opening of criminal proceedings;
• the second is a tax audit of the counterparty → conclusions about the non-commodity of transactions → transfer of the results of the audit to law enforcement agencies → the opening of criminal proceedings

Thus, preparation for the defense should be carried out at the stage of verification by the regulatory authorities, because it is at this stage that measures can be taken that will minimize the opening of criminal proceedings.

However, it should be noted that not everyone thinks about this in a timely manner, and they learn about the existence of criminal proceedings only after receiving the appropriate summons from the investigator.

In almost all cases, the opening of criminal proceedings is carried out on the basis of tax evasion. In both the first and second cases, initially the officials of the enterprise have the status of a witness. But in the future, this status changes to a suspect, an accused, and possibly a convicted person.

Therefore, in order not to obtain the status of a suspect, accused and convicted, it is necessary to take care in advance of the availability of an appropriate evidence base, and choose the right tactics of behavior (communication) with regulatory and law enforcement agencies.

Over the years, we have developed effective defense tactics, and introduced a whole set of protection mechanisms at various stages of criminal proceedings.

With this in mind, Finance Business Service specialists can and are ready to represent interests and carry out defense at any stage of criminal proceedings (pre-trial/trial).

Note that Finance Business Service does not encourage or support those who willfully evade paying taxes, and does not contribute to avoiding responsibility for it.