Criminal liability for tax evasion: legislation and international experience

Filling the State Budget of Ukraine is an extremely important condition for the functioning of the state economy under martial law. At the same time, not all citizens fulfill their obligation under Article 67 of the Constitution of Ukraine to pay taxes and fees in the manner and amounts prescribed by law. The constitutional obligation of everyone to pay taxes and duties is ensured in our country, including by the provisions of Article 212 of the Criminal Code of Ukraine, which provides for criminal liability for intentional tax evasion and duties (mandatory payments). The successful experience of countries such as the United States, the United Kingdom, Sweden and the European Union demonstrates the need for continuous improvement of legislation and the use of modern controls to ensure timely detection and punishment of tax evasion. The growth of international financial activity, the use of offshore schemes and other tax evasions makes it more difficult to combat these offenses, which makes the issue of improving legislation and control systems extremely important. During the period of martial law in our country, the criminal law provisions regarding the protection of the taxation system did not change. At the same time, there have been many regulatory changes, amendments and innovations in the tax legislation of Ukraine in recent years. Each time, this led to a significant change in the legal regulation of tax relations and, accordingly, to changes in court practice in the area of resolving these disputes. Accordingly, the high dynamism of tax legislation does not allow to ensure guaranteed stability of court practice in the field of tax relations. Given the globalization of the economy and the use of offshore zones, more active cooperation with other countries in the exchange of tax information is needed to successfully combat tax evasion. The introduction of standards similar to those of the EU would help to increase the transparency of financial transactions. Ukraine should invest in the automation of tax authorities to create a system of continuous monitoring of financial flows and taxes. The lack of effective control mechanisms and the inconsistency of legislation with international standards make it difficult to combat tax violations.