Thresholds of criminal liability under Art. 212 of the Criminal Code of Ukraine in 2019
The Law of Ukraine “On the State Budget for the year 2019” No. 2629-VIII as of November 23, 2018 has increased not only the minimum wage, which numerous state accruals and calculations are related to.
The Law of Ukraine “On the State Budget for the year 2019” has traditionally increased the living wage for an employable person in 2019, which is equal to UAH 1921 starting from January 01, 2019.
As known, this index is determinative in terms of the thresholds of criminal liability for tax evasion under Article 212 of the Criminal Code of Ukraine.
In particular, significant, large and especially large tax evasion is determined in case of non-receipt of taxes to the state budget in amount that exceeds in 1000 and more, 3000 and more, 5000 and more times respectively the tax-free minimum income of citizens (note to Article 212 of the Criminal Code of Ukraine). Therefore, in accordance with para. 5 of Subsection 1 of Section XX and subpara. 169.1.1 of the Tax Code of Ukraine, the tax-free minimum income of citizens is equal to 50% of the living wage for an employable person.
Thus, the tax-free minimum income of citizens in 2019 is equal to UAH 960.5 (50 % of UAH 1921).
Thus, the qualification under Article 212 of the Criminal Code of Ukraine in 2019 will be conducted under the following thresholds (for the sake of convenience is provided in comparison with the respective thresholds in previous years):
As one can see, thresholds of criminal liability approximate to UAH 1 billion.
We would like to remind that qualification is conducted under thresholds, which were valid in the year of the offense committed. For more details please find our newsletter “Criminal liability for tax evasion (Art. 212 of Ukrainian Criminal Code) – marginal amounts underpaid which may give rise to criminal liability as well as some other issues of importance”.
The above commentary presents the general statement for information purposes only and as such may not be practically used in specific cases without professional advice.
Statistics of criminal proceedings on taxes for 2019
Updating! False start. Increased liability on tax evasion
and some other crimes,
some other important changes of the Law on Amendments on Simplifying the Pre-Trial Investigation of Certain Categories of Criminal Offences
Decriminalization of “sham business activity”: what`s on practice?
Decriminalization of Art. 205 of the Criminal Code of Ukraine and changes to Art. 212 of the Criminal Code of Ukraine – increasing of taxes non-payment thresholds that may lead to criminal prosecution
What are the practical implications for current cases?
How to Distinguish between Disputable Tax Matters and Criminal Tax Evasion
Criminal proceedings on tax evasion in 2018 – what was year-end closing?
The importance of being consistent