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Thresholds of criminal liability under Art. 212 of the Criminal Code of Ukraine starting from January 1, 2020

14 January, 2020 Newsletters

Unlike previous years, in 2020 thresholds of criminal liability under Article 212 of the Criminal Code of Ukraine were influenced by two factors at once.

First, the Law of Ukraine dated September 18, 2019 No.101-IX has significantly increased the minimum indexes of significant, large and especially large tax evasion: 3000, 5000 and 7000 amounts of the tax-free minimum income of citizens respectively (more on this in our newsletters “Decriminalization of Article 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?” and “Decriminalization of tax evasions on amount < UAH 2 881 500. Retroactivity of the effective version of Article 212 of the Criminal Code“).

Secondly, the Law of Ukraine “On the State Budget for the year 2020” dated November 14, 2019 No. 294-IX has traditionally increased the living wage for an employable person, which is equal to UAH 2 102 starting from January 1, 2020.

As far as is known, this index is crucial for determining the thresholds of criminal liability for tax evasion under Article 212 of the Criminal Code of Ukraine. 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 2020constitues UAH 1 051 (50% from UAH 2 102).

Thereby, the qualification of the offence under Article 212 of the Criminal Code of Ukraine in 2020 will be conducted under the following thresholds (for the sake of convenience is provided in comparison with the respective thresholds in previous years):

Therefore, compared with the beginning of 2019, thresholds of criminal liability under Article 212 of the Criminal Code of Ukraine in 2020 will be increased by more than 3 times. At the same time tax evasion in amount that does not exceed UAH 3 153 000 will not be qualified as a criminal offence starting from January 1, 2020.

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.

Kind regards,

© WTS Consulting LLC, 2020

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