Defence in tax evasion cases

Large additional charges in an audit report often grow into criminal proceedings against the director or the accountant. An effective defence here means coordinating two lines: the tax dispute over the amount and the criminal defence on the question of intent. According to the State Tax Service, materials on identified business fragmentation schemes have already been passed to law enforcement; how the tax authority tells separate individual entrepreneurs from one business is explained in our article “Business Fragmentation in Ukraine”.

When to get in touch

• the audit materials have been passed to the Bureau of Economic Security
• criminal proceedings have been opened under Article 212 of the Criminal Code of Ukraine
• officers are being called for questioning and investigative actions are being carried out
• the criminal risks of the additional charges need to be assessed

What the lawyer does

• assesses the risks: the amount unpaid, the indications of intent, the likely classification
• coordinates the challenge to the assessment notice with the criminal defence
• attends questioning, searches and other investigative actions
• builds the position on the absence of intent
• works through the possibility of release from liability where payment is made before liability attaches (part four of Article 212 of the Criminal Code)
• represents the client during the pre-trial investigation and in court

Legal basis

Liability for intentional evasion of taxes, duties and other mandatory payments is established by Article 212 of the Criminal Code of Ukraine; the criminal threshold is tied to the tax-free minimum income and is recalculated each year – in 2026 the significant amount starts at UAH 4,992,000 of tax actually not received (3,000 minimums of UAH 1,664 each; note to Article 212 of the Criminal Code). The pre-trial investigation is conducted by the Bureau of Economic Security of Ukraine. The amount assessed is either agreed or overturned under Article 56 of the Tax Code of Ukraine, which bears directly on the criminal case.

Tax legislation and case law change frequently, and some provisions apply only for the period of martial law. This page reflects the position as of October 2026.

Frequently asked questions

At what amount does criminal liability begin?

The significant amount starts at 3,000 tax-free minimum incomes (note to Article 212 of the Criminal Code). For criminal offences the minimum equals the tax social benefit – 50% of the subsistence minimum for able-bodied persons as at 1 January (item 5 of subsection 1 of Section XX and subparagraph 169.1.1 of the Tax Code). In 2026 the subsistence minimum is UAH 3,328 and the minimum is UAH 1,664, so the significant amount starts at UAH 4,992,000, the large amount at UAH 8,320,000 and the especially large amount at UAH 11,648,000. The lawyer works out the precise figure for your situation.

Does paying the tax remove liability?

The law provides for release from liability where the taxes are paid and the loss to the State made good (financial sanctions and interest) before liability attaches; using that mechanism requires the steps to be taken in the right order.

Need legal assistance? Call us or leave a request – a lawyer will contact you and explain what to do in your situation.