The Economic Security Bureau of Ukraine hosted a roundtable discussion on ‘Tax evasion or optimisation: specifics of tax crime investigations, European experience in counteracting tax crimes and peculiarities of bringing to criminal liability’.

The event was attended by representatives of the American Chamber of Commerce, Association ‘Ukrtyutyun’, Association of Distributors of Ukraine, European Business Association, Federation of Employers of Ukraine and the Ukrainian Chamber of Commerce and Industry. The meeting was also attended by experts from the State Tax University, the National University of Trade and Economics, and the Vadym Hetman Kyiv National Economic University.

During the roundtable, the participants discussed the peculiarities of prosecuting tax evasion, European experience in combating this category of crimes, as well as the ESBU legislative proposals to amend the sanction of Article 212 of the Criminal Code of Ukraine.

According to Andrii Pashchuk, Deputy Director of the ESBU, the Recommendations of the Council of the Organisation for Economic Co-operation and Development (OECD) on Tax Avoidance and Evasion, as well as the Ten Global Principles for Combating Tax Crime, provide for the improvement of national legislation in terms of strengthening liability for economic offences.

In addition, in the context of European integration, Ukraine has committed itself to the full harmonisation of national legislation with EU law, which in turn will require amendments to the Criminal Code of Ukraine to cover offences that infringe on the financial interests of the EU.

At the same time, the ESBU analysts note a trend towards an increase in identified risks in the tax area: from 814 last year to 1,323 this year.

‘Of course, these are potential risks, but the upward trend in their volume requires an appropriate comprehensive response. This includes changes in the legislative sphere. I would like to note that the Bureau's analysts identify the most risks in the payment of value added tax,’ Pashchuk said in his speech.

Among the legislative changes proposed by the Bureau's experts is the strengthening of criminal liability for tax evasion. First of all, it means increasing the amount of fines. As of today, they are significantly lower than the amount of damage caused to the budget, under which criminal liability arises.

This approach has already been supported by all relevant authorities and the scientific community. In turn, representatives of business and the public emphasise that they do not oppose such innovations if they are implemented in parallel with active counteraction to the shadow economy.

The participants also discussed the specifics of the ESBU analytical work and the results of investigations into tax evasion. Thus, in 2024, detectives served 177 people with notices of suspicion of committing criminal offences under Article 212 of the Criminal Code of Ukraine. UAH 5.3 billion was refunded to the budget.

As a reminder, the Action Plan for the Implementation of the Organisation for Economic Cooperation and Development Programme for Ukraine stipulates that the ESBU is the body responsible for ensuring the harmonisation of national legislation with the provisions of the Ten Global Principles for Combating Tax Crimes and the OECD Council's recommendations on tax avoidance and evasion.