What are the consequences of not paying taxes in 2025.

      What is tax evasion, who can be held liable, and what penalties are provided for such an offense? Let's briefly clarify.

      Tax evasion (or incomplete payment) is the intentional (or unintentional) failure to fulfill the legally required obligation of each individual to pay established state taxes and levies, consisting of the non-receipt of funds into the Russian Federation budget within the prescribed deadlines.

      Currently, administrative and criminal liability are provided for tax and levy evasion in the Russian Federation. The punishment depends on the type and amount of unpaid tax or levy.

      Suppose a person unintentionally delays tax payment, underreports the taxable base, improperly applies tax deductions, or simply makes calculation errors; in this case, administrative liability applies. Administrative liability for tax evasion is regulated by the Tax Code of the Russian Federation and the Code of Administrative Offenses of the Russian Federation.

      The nature of the violation determines the liability. For example, if your accountant unintentionally made errors in calculations when determining the tax, the fine will be 20% of the unpaid tax amount. If the taxpayer deliberately evades paying (this factor must be proven by the tax inspection), the fine will be 40% of the unpaid amount (Article 122 of the Tax Code of RF). In cases of distortion of accounting data leading to a reduction of taxes and contributions by 10% or more, a law provides for a fine imposed on the general director, chief accountant, or individual entrepreneur in accordance with Article 15.11 of the Administrative Code of RF, which amounts to:

      - from 5,000 to 10,000 rubles for the first violation;

      - from 10,000 to 20,000 rubles for repeated violations.

      Paragraph 5.1 of Article 75 of the Tax Code of RF establishes the following procedures for fines in case of late payment of taxes and levies:

      — within the first 30 days of delay — 1/300 of the key rate of the Central Bank of RF;

      — from the 31st to the 90th day — 1/150 of the key rate of the Central Bank of RF;

      — from the 91st day onward — 1/300 of the key rate of the Central Bank of RF.

      In addition to monetary fines, the tax inspection may apply measures that impede normal commercial activities and complicate life for individuals generally, such as a ban on leaving the country if the debt exceeds 30,000 rubles, blocking of bank accounts of individual entrepreneurs and legal entities, or property seizure in case of large debt.

      The statute of limitations for bringing a taxpayer to administrative responsibility is three years from the date of the violation.

      As mentioned earlier, if it concerns a large amount of missing funds in the RF budget, unscrupulous taxpayers may be criminally liable if their actions were intentional and directly aimed at avoiding taxes and levies.

      Criminal liability for evading tax, levy, or insurance contributions by individuals is provided for in Article 198 of the Criminal Code of RF, and for organizations — in Article 199 of the CC RF.

      Along with citizens, the subject of the crime under Article 198 CC RF can also be individual entrepreneurs, lawyers who established law offices, notaries, or other persons engaged in private practice, as well as other individuals performing activities regulated by tax and levy legislation, since, according to Articles 26, 27, and 29 of the Tax Code of RF, the taxpayer has the right to participate in such relationships through a lawful or authorized representative.

      The subject of the crime under Article 199 CC RF can be a company director, chief accountant, or a person authorized by law or power of attorney to sign documents submitted to tax authorities (Article 29 of the Tax Code). Additionally, the subject may be a person who actually performs the duties of the organization’s head.

      Offenders can be prosecuted for these crimes if they deliberately include false information in tax declarations or other documents, or remain inactive by intentionally failing to submit tax returns (calculations) or other specified documents.

      A criminal case will be initiated if the tax debt reaches:

      For individuals (Article 198 CC RF): 2.7 million rubles for three consecutive years (large amount) and 13.5 million rubles for three consecutive years (especially large amount). If a person fails to pay taxes totaling more than 2.7 million rubles over three years, they face a fine ranging from 100,000 to 3,000,000 rubles, or a salary or other income for a period from 1 to 2 years, or forced labor for up to 1 year, or arrest for up to 6 months, or imprisonment for up to 1 year.

      If the debt exceeds 13.5 million rubles (especially large amount), the punishment is more severe: a fine from 200,000 to 500,000 rubles, or a salary or other income for 18 months to 3 years, or forced labor for up to 3 years, or imprisonment for up to 3 years.

      For legal entities and individual entrepreneurs (Article 199 CC RF): 18.75 million rubles over three consecutive years (large amount) and 56.25 million rubles over three consecutive years (especially large amount).

      If the amount of unpaid taxes by a legal entity or entrepreneur exceeds 18.75 million rubles for three years, the head faces a fine from 100,000 to 300,000 rubles, forced labor up to 2 years, arrest up to 6 months, or imprisonment up to 2 years.

      In case of unpaid taxes exceeding 56.25 million rubles, the punishment involves a fine from 200,000 to 500,000 rubles or a salary or other income for 1 to 3 years, or forced labor for up to 5 years, with disqualification from holding certain positions or engaging in specific activities for up to 3 years, or imprisonment for up to 5 years with disqualification from certain positions or activities for up to 3 years or without it.

      The statute of limitations for criminal liability for these crimes is currently 6 years from the date of the violation.

      It should be noted that, in accordance with Article 140 of the Criminal Procedure Code of RF, a reason for initiating a criminal case under Articles 198–199.2 of the Criminal Code RF is only material forwarded by tax authorities in accordance with tax and levy legislation for the purpose of considering criminal proceedings.

      If the taxpayer voluntarily settles the debt before a criminal case is initiated, liability may be waived. However, if evasion has been confirmed by tax audits, avoiding punishment becomes more difficult.

      To initiate a criminal case, the tax authority must prove that the taxpayer deliberately concealed income or underreported the tax base, used sham companies ("one-day firms") or fictitious documents, or failed to submit tax reports despite the requirements of the tax authorities.

      Typically, an audit begins as an administrative procedure, and only if the debt amount is large are the materials transferred to the Investigative Committee for criminal proceedings. To avoid criminal liability for tax evasion, it is necessary to voluntarily settle the debt, without awaiting the initiation of a criminal case. If a criminal case has already been initiated, it is possible to use Article 28.1 of the Criminal Procedure Code of RF and compensate the damage to the RF budget by paying off all outstanding debts, penalties, and fines. In such cases, the court or investigative authority will terminate the criminal prosecution of the person suspected or accused of committing the offense. Additionally, an agreement for pre-trial cooperation (for example, paying the debt in installments) may be reached.

      Attorney Solovyova Yana Aleksandrovna

      It is especially important today to be cautious when choosing partners, as tax schemes previously used are no longer effective and tax authorities easily detect them in cooperation with law enforcement agencies. One of the biggest mistakes is purchasing "paper" VAT online, as on-site tax audits will reveal the full amount of unpaid taxes and increase the problems for the audited person in accordance with other articles of the Criminal Code of RF.

      Therefore, to avoid legal issues, it is important to pay taxes on time, maintain proper accounting, compile and keep all primary documents of transactions, and consult with tax professionals.