Increase in the thresholds for economic articles in the Criminal Code of the Russian Federation: Changes for companies

Background

The State Duma unexpectedly (the bill was introduced back in April 2023) considered a bill to raise the thresholds for criminal liability for a number of economic offences in the Criminal Code of the Russian Federation and forwarded it to the Federation Council.

Elements of economic offences for which thresholds are proposed to be raised

In total, the increase in thresholds will affect more than 40 articles of the Criminal Code of the Russian Federation relating to economic offences. In Chapter 22 of the Criminal Code, which mainly deals with economic offences, the note to Article 170.2, which applies to most economic offences, will be amended by raising the lower threshold for criminal liability from 2.25 million to 3.5 million roubles.

Some of the most important articles are mentioned here in detail:

**1. Article 199 **of the Criminal Code of the Russian Federation (tax evasion):

Up to 18,75 million roubles - no criminal liability.

  • The amount of taxes, fees, insurance premiums exceeding 18 750 000 roubles (15 000 000 roubles before) in a period of three consecutive financial years is considered high;
  • 56 250 000 roubles (45 000 000 roubles previously) is recognised as a particularly large amount.

**2. Part 5 - Part 7 of Article 159 **of the Criminal Code of the Russian Federation (fraud with intentional non-fulfilment of contractual obligations in the field of business activity):

Up to 250 000 roubles of damage - no criminal liability.

  • 250 000 roubles are recognised as significant damage (10 000 roubles previously);

  • 4 500 000 roubles (3 000 000 roubles previously) is recognised as major damage;

  • 18 000 000 roubles (12 000 000 roubles previously) are recognised as particularly great damage.

**3. Article 178 **of the Criminal Code of the Russian Federation (restriction of competition):

Up to 80 million roubles of income and up to 16 million roubles of damage - no criminal liability.

  • 80 000 000 roubles are recognised as income on a large scale (50 000 000 roubles previously);

  • 395 000 000 roubles (250 000 000 roubles previously) are recognised as income on a particularly large scale;

  • 16 000 000 roubles (10 000 000 roubles previously) are recognised as major damage;

  • 47 500 000 roubles (30 000 000 roubles previously) is recognised as a particularly large loss.

 

An approximately similar approach is provided for other offences, for example:

  • Article 199.1 of the Criminal Code of the Russian Federation "Failure to fulfil the duties of a tax representative";

  • Article 194 of the Criminal Code of the Russian Federation "Evasion of customs duties, special, anti-dumping and (or) countervailing duties imposed by an organisation or an individual";

  • Article 180 of the Criminal Code of the Russian Federation "Illicit use of means of individualisation", etc.

 

The draft law has not yet passed the Federation Council and has not yet been signed by the President of the Russian Federation, but its active enforcement in the State Duma indicates that the likelihood of its adoption is high.