Doing Business in Russia slide image

Doing Business in Russia

Doing Business in Russia 53 Fines based on the Criminal Code The Criminal Code assigns responsibility for tax evasion by an individual or a legal entity. According to the Russian Criminal Code, the officials of a company are subject to criminal fines for any underpayment of taxes by the company. In particular, an especially large tax evasion can result in imprisonment terms of up to six years, prohibitions on the execution of specific activities for three years, and a fine of RUB200,000-RUB500,000 (from USD3,075 to USD7,689), or a fine of the amount of salary or other income the offender accrued over a period from one to three years. Tax evasion is considered especially large if the amount of unpaid taxes over three years exceeds RUB10,000,000 (approximately USD154,786), and provided that the amount of unpaid taxes exceeds 20% of the total amount of taxes payable or exceeds RUB30,000,000 (approximately USD461,358). An organisation or an individual is free of criminal liability if they have committed tax evasion for the first time and have paid to the budget, in full, all of their tax arrears and late payment interest, and all associated fines. Fines for customs violations Type of violation Unlawful transportation of goods and/or vehicles across the customs border of the Customs Union Non-declaration of goods via the established procedures Incorrect declarations (e.g. provision of incorrect information regarding the name, description, classification code of goods, etc.), if the declaration led to underpayment of customs duties Violations of the customs procedure Illegal acquisition, use, storage, or transportation of goods Evasion of customs duties Fine Fine of 100% to 300% of the value of the goods and/or vehicles, with the possibility of the goods / vehicles being seized. Fine of 50% to 200% of the value of the goods, with the possibility of the goods being seized. Fine of 50% to 200% of the underpaid customs payments, with the possibility of the goods in question being seized. Fine of 100% to 200% of the value of goods, with the possibility of the goods being seized. Fine of 50% to 200% of the value of goods, with the possibility of the goods being seized. Fine of RUB100,000-RUB500,000 (from USD1,537 to USD7,689) or of 1-3 years' salary, or confinement for a period of up to two years. If there has been an especially large customs duties evasion, a fine of RUB300,000-RUB500,000 (from USD4,477 to USD7,689) or of 2-3 years' salary, or confinement of up to 5 years with a forfeit of the right to hold some posts or carry out some activities for a period of up to 3 years (or without any forfeit). The evasion of customs duties is considered large scale if the total sum of unpaid customs duties exceeds RUB1,000,000 (approximately USD15,378) and is considered exceptionally large scale if it exceeds RUB3,000,000 (approximately USD46,135). ©2016 KPMG. All rights reserved.
View entire presentation