KPMG : Decriminalization of tax offences

Federal Law No. 381-FZ dated 29 December 2009 On Amendments to Part One of the Tax Code of the Russian Federation and Separate Legislative Acts of the Russian Federation (hereinafter the Federal Law) was published on 31 December 2009 and, with the exception of some provisions, entered into force from 1 January 2010.

Andrey Vakar
Senior Consultant, Tax
KPMG in Russia and the CIS

The Federal Law makes amendments to the Tax Code of the Russian Federation (RF Tax Code), the Criminal Code of the Russian Federation (RF Criminal Code), Criminal Procedure Code of the Russian Federation (RF Criminal Procedure Code) and the Law of the Russian Federation On the Police.

The amendments have been adopted to clarify the procedure for holding individuals criminally liable for offences related to violations of the legislation of the Russian Federation on taxes and duties.

In particular, amendments have been introduced to the RF Criminal Code that increase the threshold size of concealed tax that may lead to criminal prosecution - for individuals – up to RUB 600,000 for three financial years in a row (currently RUB 100,000), for legal entities –