Article 212 of the Criminal Code of Ukraine

Criminal Proceedings

Grounds for initiating criminal proceedings under Article 212 of the Criminal Code of Ukraine: modern approach and high-profile examples

Key grounds for initiation:

A criminal case under Article 212 (“Tax evasion”) may be registered based on the following grounds:

• non-payment of taxes in significant, large, or especially large amounts. As of 2024, the threshold for liability under Part 1 of Article 212 is over UAH 4.5 million;
• intentional nature of actions — the investigation must prove that the evasion was deliberate, not due to an error or negligence;
• actual non-receipt of funds by the budget after the due date — this is when the crime is considered completed;
• a tax notice-decision is not mandatory — the Bureau of Economic Security (BES) registers proceedings even on the basis of a statement or analytical report. A tax audit report is evidence, but the notice-decision is not always required;
• BES or State Tax Service analytics — since 2023, grounds can include suspicious transactions, abnormal cash flows, tax minimization schemes, etc.;
• report, statement, or independent discovery of signs of a crime by an investigator or prosecutor;
• subject of the crime — official, sole proprietor (FOP), or anyone with a tax obligation.

How analytical grounds work:

BES and the Tax Service use analytical tools to detect:

• fictitious transactions (e.g., VAT “skrutka” schemes, chains of shell companies, FOP misuse in business);
• understatement of the tax base;
• discrepancies between actual activity and declared income;
• schemes using front persons or companies.

Analytical reports allow entries in the Unified Register of Pre-Trial Investigations (URPTI) even without a formal complaint or audit results.

High-profile cases from 2024–2025:

1. “Cash-out king” and retail networks.
   In 2025, BES completed an investigation into company executives who helped retail chains evade taxes. Amount: UAH 764 million. Scheme: VAT understatement, fictitious firms. Case sent to court.
2. Organized group from Kyiv — UAH 45 million.
   In 2024, Sviatoshynskyi District Court considered a case against a group that used fake firms. After paying debts, they were released from liability.
3. Excise tax and corporate income tax — UAH 3.4 billion.
   In H1 2024, damages of UAH 3.4 billion were compensated. Companies avoided excise and profit tax — exposed through BES and Tax Service analytics.
4. Chernivtsi region — 250 entrepreneurs.
   In 2024–2025, over 250 entrepreneurs were found to be evading taxes. The core evidence — tax service analytics.

Conclusion:

Criminal cases under Article 212 can be registered not only based on audits or complaints but also via modern analytical tools used by BES and the Tax Service. Recent years’ cases prove the effectiveness of this proactive approach — resulting in arrests, fines, and millions in recovered damages.

The biggest paradox: you might have no tax debt — yet still face tax evasion charges.

In 2025, there’s no room for complacency.

If you’ve encountered similar issues — let’s talk in advance. One timely legal consultation can save you from serious problems.

“WINNER” LAW FIRM — one of Ukraine’s leading firms in tax, criminal, administrative, commercial law, and litigation.

Yasko Igor-Managing Partner of WINNER Law Firm

📞 Contact: +38 (067) 755-55-13