Article 212 of the Criminal Code of Ukraine: Who Can Be Accused?

       Article 212 of the Criminal Code of Ukraine is one of the key provisions in the field of economic crimes. It provides for criminal liability for deliberate tax evasion, including taxes, fees, and other mandatory payments. Its purpose is to protect the economic interests of the state and ensure stable budget revenues.

Who Can Be Held Liable?         
The following may be held criminally liable:

• Company executives (directors, CEOs);
• Chief accountants and financial officers;
• Sole proprietors (individual entrepreneurs);
• Founders, if involvement in evasion is proven;
• Other officials influencing financial decisions;
• Accomplices: instigators, facilitators, consultants.

What Acts Constitute a Crime?

• Deliberate evasion of taxes or payments;
• Actual non-payment to the state budget;
• Causal link between actions and consequences.

Important: criminal liability arises only in cases of intentional evasion. Miscalculations or misinterpretations do not constitute a crime.

Threshold Amounts:

• Significant — over UAH 4,542,000;
• Large — over UAH 13,626,000;
• Especially large — over UAH 22,710,000 (as of 2025).

Consequences:

• Heavy fines;
• Disqualification from certain roles;
• Confiscation of property (in serious cases);
• Exemption from liability if damages are compensated before formal suspicion.

Why Founders May Be Accused:         
Founders or informal influencers may be prosecuted if they:

• Instructed or approved evasion schemes;
• Used fake contracts or counterparties;
• Controlled undeclared cash flows;
• Coordinated tax evasion activities.

How to Protect Yourself and Your Business:

• Document all transactions clearly;
• Ensure financial transparency;
• Conduct internal and third-party audits;
• Seek legal support immediately when under scrutiny.

Conclusion:
Article 212 targets a broad range of actors — not only directors and accountants, but also founders and external advisors. Proving intent and involvement is critical. Professional legal defense is essential in minimizing risks.

📺 More details in the video lecture by business defense practice leader Ihor Yasko (link below).