The Verkhovna Rada of Ukraine decriminalized sham business by passing Bill No. 1080 in its second reading.
Members of parliament withdrew Article 205 “Sham Business” from the Criminal Code of Ukraine, which provides fines of up to 3,432 dollars.
In addition, the deputies increased the sums of tax evasion, non-payment of which can result in a form of criminal responsibility in accordance with Art. 212 of the Criminal Code of Ukraine:
- significant scale - 1000 t.f.m., 38,785 dollars; suggested – 116,356. dollars;
- large scale - 3000 t.f.m., 116,356. dollars; suggested – 193,926 dollars;
- especially large scale - 5000 t.f.m., 193,926 dollars; suggested – 271,497 dollars.
T.F.M. is the tax-free minimum of citizens' income that is equal to 50% of the subsistence minimum for an able-bodied person (calculated per month), established by law on January 1 of the tax year (in 2019 - 38,44 dollars).
During the preparation for the second reading, the deputies decided to strengthen the responsibility for tax evasion with fines increasing them from 686-1,372 dollars up to 2,059-3,432 dollars. For the same violation made by a group of people, or if there was a lack of budget or state funds in large scale, fines increased from 1,372-2,059 dollars up to 3,432-4,805 dollars. The law will become valid the day after its official publication. As we reported earlier, the parliament supported this bill on September 10, with 365 votes of its member.