The duty of citizens and organizations of the country to regularly make tax payments to the state budget is enshrined in the Constitution and the tax legislation of the Federation (Article 67.8 of the Constitution of the Federation, Article 3 of the Tax Code of the Federation). Non-payment of taxes or their incomplete payment is considered an offense. At the same time, their reason may be not open refusal to make mandatory payments to the treasury, but in understating the tax base, incorrect charging of payments and other illegal actions. What sanctions for non-payment of taxes can be raised against individuals and legal entities?
Division of responsibility
- Non-payment of taxes provides for the application of three types of liability – tax, administrative and criminal. There are two main rules in this direction:
- For one economic agent, only one type of liability can be applied – repeated punishment for the same offense is unacceptable;
- In relation to citizens and IP, criminal and administrative liability is applied, and in respect of organizations – criminal and tax sanctions. The t1135 penalties are there also.
- In the first case, the punishment is aimed at compensating for the harm done to existing social relations (it is important to understand that failure to pay taxes is one of the key reasons for the budget deficit). In the second case, it is a matter of material compensation to the budgetary system.
Tax sanctions against the organization and its officials
A legal entity can incur only tax liability for non-payment of compulsory payments to the treasury; criminal responsibility also affects its officials.
Tax liability assumes that if there is a failure to pay or underpay taxes to the treasury, the FNS notifies the organization that it is necessary to deposit the missing amount. If after the expiration of the period established by the tax authority the debt is not repaid, then a fine is imposed on the legal entity, which is recovered from:
Funds in the bank accounts of the organization
Criminal responsibility affects the head of the company, its chief accountant and other persons responsible for the correct charging of tax liabilities and payment of taxes to the treasury. It begins to act in the event that there was a deliberate non-payment, untimely transfer of funds or delay in reporting, concealment of a part of the company’s income or assets, incorrect calculation of payments.
Criminal liability presupposes such sanctions (Art.199 of the Criminal Code of the Federation):
In the standard case – a penalty for non-payment of taxes from 100 000 to 300 000 dollars or arrest with the inability to continue to occupy a similar leadership position;
In case of concealment or non-payment of an amount equal to the total tax payments of the organization for three or more years, a fine of 200,000 to 500,000 dollars or imprisonment for a period of 6 months.
Those officials who certify with their signature the tax and financial statements of the organization are brought to criminal responsibility.