December 23, 2014
On December 17, 2014 the IV Annual Winter Forum on Criminal Law and Procedure organized by the Ukrainian Advocates Association took place. The problematic issues in the criminal procedural law, the Law of Ukraine “On Criminal Proceeding in Absentia”, the particular aspects of the criminal proceedings under Article 212 of the Criminal Code of Ukraine (hereinafter – CCU) were discussed on the Forum. “KM Partners” and “WTS Consulting” LLC became partners of the session.
Attorney of “KM Partners” and Senior of Counsel of “WTS Consulting” LLC Oleksiy Spivak delivered a report regarding the particular aspects of the criminal proceedings under Article 212 of the CCU and the necessity of legislative changes of the term of “tax evasion”.
In particular, Oleksiy emphasized the fact that according to the statistics of the year 2013 only 2% of the criminal proceedings under Article 212 of the CCU were submitted to the court with the bill of indictment. However, the speaker pointed out that the problem consists in the attempt to lead any significant tax dispute to the criminal proceeding. In particular, it was mentioned that the certain draft laws were introduced according to the para. 3.5.6 of the Coalition Agreement, which prohibited the criminal prosecution of the person for tax evasion till the final agreement of the tax duties. Also Article 212 of the CCU may be supplemented with the new part which indicates the absence of corpus delicti in case of receipt of funds to the budget within the terms prescribed by the Tax Code of Ukraine. Moreover, the new Article 212-2, which would prescribe the liability for the abuse and other violation in VAT, and probably resolve the problem of the so called “void agreements” may be added to the CCU. The risks of initiation of criminal proceeding against the taxpayer under Article 209 of the CCU, due to criminal prosecution of its contractor under Article 212 of the CCU, and international practice of the “tax evasion” were also analyzed in the report.