Tax payment or a criminal record? The Territorial Office of the ESBU in the Vinnytsia region reminds of liability under Article 212 of the Criminal Code of Ukraine

 The Economic Security Bureau of Ukraine emphasizes that paying taxes is not only a constitutional duty of every business but also the foundation of the state's financial stability under martial law.

Concealing profits entails liability under Article 212 of the Criminal Code of Ukraine—intentional evasion of taxes and fees (mandatory payments).

However, current legislation gives businesses a clear choice: a civilized correction of mistakes or criminal punishment and a criminal record.

1. When does the law allow an individual to be exempted from criminal liability?

Ukrainian legislation is quite lenient toward those who are willing to cooperate with the investigation and compensate the state for its losses.

According to Part 4 of Article 212 of the Criminal Code of Ukraine, a person is exempted from criminal liability if, during the pre-trial investigation stage, they have fully paid the taxes, fees, or other mandatory payments and compensated for the damages inflicted upon the state by their untimely payment (financial sanctions, penalties).

The criminal proceedings are dismissed by the court, the person is deemed to have no criminal record, and the business can continue its legal operations.

2. What awaits those who refuse to compensate for damages?

If an offender ignores legal requirements, full criminal liability applies.

ESBU detectives send the case to court with an indictment. The consequences for such an individual include a court verdict and a criminal record; massive fines; confiscation of property; and the deprivation of the right to hold certain positions or engage in certain activities for a term of up to 3 years.

The concealed taxes will still have to be paid, but then on the basis of a court verdict.

Performance statistics prove that most offenders choose the path of voluntary return of the damages inflicted. During this year, detectives of the Territorial Office of the ESBU in the Vinnytsia region have sent 12 criminal proceedings to court regarding facts of intentional tax evasion.

Eleven proceedings were sent to court with a motion to exempt the individuals from criminal liability due to the full compensation of damages. The total amount of compensation exceeded UAH 130 million, which has already been remitted to the budget and is working for the state.

Only 1 criminal proceeding was sent to court with an indictment regarding intentional tax evasion in the amount of nearly UAH 22 million. Now, the court will decide the fate of this entrepreneur and their property.

The Economic Security Bureau of Ukraine does not aim to pressure businesses or halt the operations of enterprises. Our task is to protect the economic security of the state. Regarding those who consciously rob the state during this difficult time, the ESBU will act uncompromisingly and exclusively within the framework of the law.