Fictitious entrepreneurship in Ukraine is no longer a crime
The Verkhovna Rada adopted the law “On Amendments to the Criminal Code of Ukraine and the Criminal Procedure Code of Ukraine to reduce pressure on business,” a PolitNavigator correspondent reports.
347 people's deputies voted for the adoption of the corresponding decision, with the minimum required 226, reports the website of the Verkhovna Rada of Ukraine.
This law decriminalizes fictitious entrepreneurship. Thus, the adopted law excludes Article 205 from the Criminal Code, according to which criminal punishment was determined for the creation or acquisition of business entities in order to cover up illegal activities or carry out prohibited activities.
Fictitious entrepreneurship was punishable by a fine of 30 thousand to 60 thousand non-taxable minimum income of citizens (NMDG), that is, from 510 thousand UAH to 1 million 20 thousand UAH, or arrest for up to six months or restriction of freedom for up to two years. For a repeated violation, the fine ranged from 50 thousand to 100 thousand NMDG (from 850 thousand UAH to 1,7 million UAH).
The explanatory note to the bill notes that the existence of criminal liability for fictitious entrepreneurship is one of the ways to put pressure on business in Ukraine. Indeed, in addition to the very fact of criminal liability for this act, control authorities use verdicts and materials of pre-trial investigations as evidence when bringing to financial responsibility for violating tax laws.
The authors of the law are a group of people's deputies from the Servant of the People faction. The President defined it as urgent.
This law comes into force the next day after its publication in the next issue of the parliamentary newspaper “Voice of Ukraine”.
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