Who is the primary subject of liability for economic and tax crimes—the company or the individual?

The primary subject of criminal liability is the head of the legal entity or another duly authorized officer. A legal entity may only be held criminally liable following the conviction of an individual, provided the necessary legal grounds exist.

If a company has already been fined under the Tax Code, can it also face criminal liability?

Yes. Liability under the Tax Code applies exclusively to the legal entity. However, parallel administrative or criminal proceedings may also be initiated against the company’s executives or responsible individuals.

Criminal Defense in Cases of Tax and Economic Crimes

To protect a free and competitive economic market from undue state interference and potential illegality, we provide comprehensive protection of your interests through the team of criminal law specialists, corporate lawyers, and accountants.

The Specific Nature of Tax and Economic Crime Cases

Criminal cases related to economic and tax cases are inherently more complex, as the facts under investigation typically fall outside the direct scope of criminal law. More often, they involve issues of accounting, allocation of corporate officers’ powers and responsibilities, and financial reporting – areas in which even investigators may lack sufficient expertise. In such cases, forensic accounting examinations are usually required to assess the damage allegedly caused to the state.

The defense strategy in such cases typically demands a proactive approach – not merely responding to accusations but taking initiative. The direction and outcome of the investigation are heavily influenced by the documents and data you provide, which serve as the foundation for expert assessments.

For this reason, our diverse team of professionals is uniquely positioned to safeguard your rights and interests effectively, ensuring at every stage that risks are fully assessed and that the information you provide cannot be misused against you.

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Types of Economic and Tax Crimes

Illegal Entrepreneurial Activity (Article 281 of the Criminal Code)
Conducting business without state registration or licensing, or engaging in prohibited entrepreneurial activities without proper authorization, including unauthorized use of natural resources, if such conduct causes substantial material damage to individuals, organizations, society, or the state.
Sham Transactions (Article 286 of the Criminal Code)
Issuing false documents regarding expenses or income, or providing fictitious invoices without actual delivery of goods or services, thereby causing substantial material damage.
Evasion of Taxes, Duties, or Other Obligatory Payments (Article 290 of the Criminal Code)
Failure by company executives, individual entrepreneurs, or responsible persons to submit mandatory reports, calculations, or declarations within the prescribed deadlines—or inclusion of false data, concealment of taxable objects, or other forms of fraud—leading to significant non-payment of taxes, duties, or other obligatory payments.
Illegal Activity During Bankruptcy Proceedings (Article 287 of the Criminal Code)
Conducting unlawful activities during insolvency or bankruptcy proceedings, or while such risks are foreseeable, by entrepreneurs, company founders, or authorized persons, which results in substantial material damage to individuals, organizations, society, or the state.
Fraudulent Bankruptcy (Article 288 of the Criminal Code)
Deliberate destruction or concealment of property, execution of fictitious transactions, or other manipulations by individuals, entrepreneurs, or corporate managers designed to artificially create or worsen insolvency, thereby causing substantial material damage.
Misrepresentation or Concealment of Beneficial Ownership Information (Article 294 of the Criminal Code)
Submitting false information or concealing required data in declarations regarding the ultimate beneficiary of the competent state registration authorities.

FAQs

1. Who is the primary subject of liability for economic and tax crimes—the company or the individual?
The primary subject of criminal liability is the head of the legal entity or another duly authorized officer. A legal entity may only be held criminally liable following the conviction of an individual, provided the necessary legal grounds exist.
2. If a company has already been fined under the Tax Code, can it also face criminal liability?
Yes. Liability under the Tax Code applies exclusively to the legal entity. However, parallel administrative or criminal proceedings may also be initiated against the company’s executives or responsible individuals.

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Extradition

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Criminal Defense in Cases of Tax and Economic Crimes

The Specific Nature of Tax and Economic Crime Cases

MB Legal is featured on

Speak to a Criminal Defense Lawyer Now!

Types of Economic and Tax Crimes

Illegal Entrepreneurial Activity (Article 281 of the Criminal Code)

Sham Transactions (Article 286 of the Criminal Code)

Evasion of Taxes, Duties, or Other Obligatory Payments (Article 290 of the Criminal Code)

Illegal Activity During Bankruptcy Proceedings (Article 287 of the Criminal Code)

Fraudulent Bankruptcy (Article 288 of the Criminal Code)

Misrepresentation or Concealment of Beneficial Ownership Information (Article 294 of the Criminal Code)

FAQs

1. Who is the primary subject of liability for economic and tax crimes—the company or the individual?

2. If a company has already been fined under the Tax Code, can it also face criminal liability?

Our Services

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