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On September 18, 2019 the Verkhovna Rada of Ukraine introduced amendments to the Criminal Code of Ukraine (hereinafter -  the “CC of Ukraine”).

Thus, the CC of Ukraine excludes Article 205 - fictitious entrepreneurship, according to which the fiscal service checked legal entities within the relevant criminal proceedings in respect of creation (acquisition) of fictitious business entities.

Furthermore, the threshold of criminal liability under Article 212 of the CC of Ukraine (intentional tax evasion) is increased.

Below are the comparative amounts of the previously existing and currently accepted threshold of liability:

Thus, since certain changes came into force, all criminal proceedings initiated under Article 205 of the CC of Ukraine and under Part 1 of Article 212 of the CC of Ukraine shall be closed on exonerative grounds (absence of criminal offense as a result of abolishment of responsibility for it). And all criminal proceedings initiated under Part 2 of Article 212 and Part 3 of Article 212 of the CC of Ukraine shall be reclassified in accordance with Part 1 of Article 212 of the CC of Ukraine and Part 2 of Article 212 of the CC of Ukraine. Since this reduces the time for criminal prosecution, certain criminal proceedings shall be closed by court due to expiry of the criminal proceedings as well. Closing, reclassification and appealing to court for closing shall be conducted by law enforcement agencies individually. However, considering the state of the law enforcement system, it is recommended to apply to appropriate authority with reasoned petition on the closure of criminal proceedings, reclassification or appealing to court for closing (depending on situation).

(The Law No. 101-IX as of September 18, 2019 On Amendments to the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine on Reducing Business Pressure, adopted by the Verkhovna Rada of Ukraine on September 18, 2019, entered into force on September 25, 2019).

Kyrylo Kazak

Partner

KPD Consulting

 

 

Should you have any questions with respect to above or require any additional information, please do not hesitate to contact Mr. Kyrylo Kazak (k.kazak@kpdconsulting.com.ua). We will be pleased to assist You. The information contained in this overview is not intended to provide legal advice and should not be relied on or treated as a substitute for specific advice concerning individual situations.

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