Illegal business at home. What is the penalty for illegal business? Where can I report illegal business activities?

Many of the readers are entrepreneurs and know that such activity can both enrich and ruin. In civil law, this is how private business- risk-based activity, the purpose of which is to make a profit. There are hundreds of types of entrepreneurship - in the first place, of course, trading activity followed by construction, real estate, etc. Approximately the same number of species and illegal entrepreneurial activity, fines and other liability for which is provided for by the legislation of the Russian Federation.

The concept of entrepreneurship

In Russia, this term is defined using the following features:

All of the above features are typical for commercial activities. In addition, there are additional features that are mentioned in the explanations of the Supreme Court and the Department of the Tax Service of the Russian Federation: maintaining documentation on transactions that have taken place, as well as on common work IP, the presence of a relationship between operations and counterparties, etc.

Illegal business

The legislation of Russia prohibits conducting illegal business activities, for which both administrative (in the form of a fine) and criminal liability are provided. There will be a discrepancy with the law if such activity:

• carried out without registration;
• carried out without a state license.

Without registering

This means that you have not submitted information about yourself as an individual entrepreneur to the tax office, and at the same time you are actively engaged in commercial activities to make a profit.

Under the signs of illegality, such actions of a businessman may also fall, which were initially registered in accordance with the requirements of the law, but then the registration was terminated (upon an application, in connection with a court decision, etc.).

Example #2. Rakitin P.E. long time ago commercial activities(furniture production and subsequent sale), IP was issued to him several years ago. In view of the onset of the economic crisis, Raktinin P.E. decided to stop production and filed an application for exclusion from the register of entrepreneurs, which was done. A few months later, Rakitin P.E. decided to resume production, hired workers, set up machines, restored ties with suppliers and buyers, but did not register again as an individual entrepreneur in the prescribed manner. In this case, there are grounds for holding Rakitin liable for illegal business.

In rare cases, such actions of a private trader are also recognized as illegal when registration is available, but it was carried out illegally. In such situations, the falsity of the documents submitted for registration is revealed, on the basis of which an entry in the register was erroneously made.

Example #3. Konovalov E.N. submitted documents for registration of an individual entrepreneur, among which was an application indicating the OKVED code according to retail. Based on the submitted Konovalov E.N. documents, an entry was made on its registration as an individual entrepreneur in the register. Later it was established that in fact Konovalov E.N. led wholesale trade, while it was not registered as an individual entrepreneur. Konovalov's actions were regarded as illegal business.

Based on the explanations of the Supreme Court of the Russian Federation, it follows that the actions of a citizen who initially acquired a certain thing, object, real estate for personal use, and subsequently entered into a lease agreement (even for a long period), will not be considered illegal entrepreneurship, since the property belonging to him was not useful.

Example #4. Nikeshina R.G. I bought a one-room apartment in which I lived. A year later, she got married and moved in with her husband, and began to rent out her apartment to replenish the family budget. In this case, in the actions of Nikeshina R.G. there are no violations, since the originally purchased apartment was intended for personal use. However, if Nikeshina R.G. not accountable for additional income and does not pay 13% of it, then there may be questions from the tax inspectorate, up to criminal liability under Art. 198 of the Criminal Code of the Russian Federation.

Without a license

In some cases, provided by law, for the legal activities of an individual entrepreneur, registration alone is not enough, you need to obtain a license.

So, in accordance with Federal Law FZ-99 dated May 4, 2011 “On Licensing Certain Types of Activities”, a license must be obtained:

• for the production of alcohol-containing products;
• for the activities of credit institutions;
• non-state pension funds;
• joint-stock investment funds;
• insurance activities;
• private security activities;
• for business management apartment buildings etc.

The absence of a license in those cases that are reflected in the FZ-99 list entails liability for illegal business activities for individual entrepreneurs.

Example #5. Leonova A.P., who has a higher pedagogical education in the field of foreign languages, opened an educational center at her place of residence, while she was registered as an individual entrepreneur with the purpose of activity - “provision of other types of services”. During the audit conducted by the tax authorities, it was found that, in violation of the requirements of the law "On Licensing", Leonova A.P. did not receive a license for educational activities in accordance with the established procedure, which was the basis for bringing her to justice.

Violation will also occur in cases where the entrepreneur continues to operate, but:

• the previously obtained license has been cancelled;
• an application for a license has already been submitted to the licensing authority, but a decision has not yet been made (or a refusal to issue followed);
• if the permit has expired.

When an entrepreneur has a license for a certain type of activity and at the same time is engaged in another type, for which a special permit is also required, such entrepreneurship will also be considered not in accordance with the law.

Example #6. Dorin G.O. for many years he was engaged in private medical practice under a license obtained by him in the Ministry of Health of the region. After many years of work, he also became involved in pharmaceutical activities, however, in violation of the requirements of federal law, licenses for this species did not receive, was prosecuted in the form of a fine for illegal business activities.

Administrative responsibility

The decision to bring to administrative responsibility Article 14.1 of the Code of Administrative Offenses of the Russian Federation shall be issued by the justice of the peace of the judicial district in whose territory the offense was recorded.

How is a crime detected? With an inspection at the request of citizens or on their own initiative, an entrepreneur can be visited by a representative of the tax inspectorate, police, state inspection on trade, etc. These officials draw up a protocol, which reflects all the violations that have been recorded.

After the protocol is drawn up, a person can be held administratively liable within two months, after which the proceedings on the material are terminated. According to part 1 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation for illegal entrepreneurial activity without registration is provided fine from 500 to 2000 rubles.

The verification may also consist in conducting a test purchase, the result of which will be significant, indisputable evidence of guilt. Typically, test purchases are used by the police to detect illegal business without a license, often in the sale of alcoholic beverages. In such cases, liability arises under Part 2 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, where the punishment may be in the form of a fine from 2000 to 2500 rubles with or without confiscation of manufactured products.

Example #7. The police received a message about the illegal business activities of IP Rasulov A.A., who traded in products in own store located in a residential area of ​​the city. From a resident of the house, on the ground floor of which there was a shop, there were complaints that Rasulov did not have a license to sell alcoholic beverages. At the same time, as follows from the complaints, at night he sells vodka and beer to people who immediately consume purchased drinks in the courtyards of residential buildings. During the test purchase, the fact of selling alcohol in the absence of a license was confirmed, a protocol was drawn up under Part 2 of Art. 14.2 of the Code of Administrative Offenses of the Russian Federation. Subsequently, Rasulov A.A. imposed a fine of 2500 rubles.

Part 3 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation provides for punishment in the form of a fine up to 2000 rubles for illegal business when there are violations of the terms of the license. If such violations are recognized as gross, then punishment is imposed under part 4 of the specified article of the Code of Administrative Offenses of the Russian Federation (fine up to 8000 rubles). For each type of activity, the Decree of the Government of the Russian Federation establishes individual criteria according to which this or that violation of the conditions can be attributed to a number of gross ones.

Example #8. Markin E.P. registered as an entrepreneur, he was issued a license for transportation activities by car equipped to accommodate more than 8 people. Markin E.P. challenged in court bringing him to justice under Part 4 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, believing that the lack of equipment for checking the technical serviceability of cars is not a gross violation, he did not agree with the fine of 8,000 rubles imposed on him. Contrary to the arguments of Markin E.P., the court recognized the protocol drawn up against him under Part 4 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, since paragraph 5 of the Regulation on Licensing Transportation approved by the Government of the Russian Federation, the repeated absence of equipment and premises for car repair during the year is considered a gross violation.

Responsibility under the Criminal Code of the Russian Federation

For criminal liability for illegal business, one of the mandatory features, according to Art. 171 of the Criminal Code of the Russian Federation, is the infliction of large damage - that is, in excess of 2 million 250 thousand rubles. Damage can be caused to both citizens and any organizations, as well as the state.

As an alternative sign, which may be instead of "causing major damage", "deriving income" in a similar amount is provided.

Example #9. Kolaev G.E. carried out private security activities as an individual entrepreneur in the presence of an expired license. He was prosecuted for committing a crime under Part 1 of Art. 171 of the Criminal Code of the Russian Federation, but he appealed against the guilty verdict due to disagreement with the accusation - he believed that he had not caused harm to anyone. As a result of the appeal hearing of the case, the sentence was upheld, since his income from illegal activities for 2020 amounted to 3,500,000 rubles, that is, exceeded 2,250,000 rubles, and the presence of the “causing major damage” feature is not required here.

It should be noted that when recalculating income, according to the clarifications of the Supreme Court of the Russian Federation, the proceeds received by the entrepreneur without taking into account expenses and expenses, as well as taxes, are taken into account.

According to part 1 of Art. 171 of the Criminal Code of the Russian Federation for illegal entrepreneurship (both without registration and without a license or in violation of the terms of a license) threatens fine up to 300,000 rubles or compulsory work up to 480 hours.

If there are additional signs (part 2 of article 171 of the Criminal Code of the Russian Federation), the punishment for illegal business activities can be in the form of:

• fine up to 500000 rubles;
• imprisonment up to 5 years with a fine of up to 80,000 rubles or without it.

Such additional (qualifying) features may be:

1. commission of a crime by an organized group - when several criminals have united in order to carry out entrepreneurial activities illegally, while roles are clearly distributed between them, each receives a part of the income, etc.
2. if the income received as a result of criminal activity is especially large, that is, it exceeds 9 million rubles.

Aggregate with other crimes

Often, along with illegal entrepreneurial activity, there are other offenses in the actions of the perpetrator, for example:

• the use of someone else's trademark or name, various product designations belonging to another organization - then the actions are additionally qualified under Art. 180 of the Criminal Code of the Russian Federation;
• production, storage, transportation or sale of goods without excise marking, if it is mandatory in accordance with the law - there will be an additional qualification under Art. 181 of the Criminal Code of the Russian Federation;
• if a product is sold that does not meet the safety requirements of citizens, then additionally the actions of the violator will be qualified under Art. 238 of the Criminal Code of the Russian Federation.

Usually the goal of illegal business is tax evasion. Meanwhile, if an individual entrepreneur conducts illegal activities, additionally qualify his actions under Art. 198 of the Criminal Code of the Russian Federation (non-payment of taxes) is impossible. During the investigation, all income derived by the guilty will be recognized as material evidence in the framework of a criminal case under Art. 171 of the Criminal Code of the Russian Federation and, in the event of a guilty verdict, everything will be turned into state revenue.

If an entrepreneur has carried out such criminal activities as the sale of weapons, the manufacture of psychotropic substances, etc., then these actions are fully covered by specific articles of the criminal law, without Art. 171 of the Criminal Code of the Russian Federation.

Results

So, you should know about liability for illegal entrepreneurship under Article 171 of the Criminal Code of the Russian Federation:

1. it occurs as a result of a person carrying out permanent activities aimed at systematically extracting profits without state registration, without a license or in violation of licensing conditions, if such actions caused damage to citizens in the amount of more than 2,250,000 rubles, or income was generated for this amount (if less than 2,250,000 - liability arises according to article 14.1 of the Code of Administrative Offenses of the Russian Federation);
2. both an entrepreneur and a person who actually conducts such activities, but does not have state registration, as well as the head of a legal organization whose activities are not registered, can be involved as an accused;
3. any regulatory authorities, as well as the police and the prosecutor's office, can conduct an inspection and identify violations, where you can write a complaint, if necessary, declare the fact of illegal business;
4. the maximum punishment provided for by Article 171 of the Criminal Code of the Russian Federation is imprisonment for up to 5 years.

In accordance with current legislation Russian Federation as of 2016-2017, an individual is prohibited from engaging in entrepreneurial activities for the purpose of generating income without registering with the tax authorities at the place of residence. In accordance with the interpretation of the Civil Code, entrepreneurial activity is any activity aimed at systematic obtaining arrived.

Any type of commerce requires registration of an individual entrepreneur, payment of taxes and fees, timely reporting to the relevant authorities. Illegal activity leads to administrative and criminal liability - imposition of fines, initiation of criminal cases, etc. The degree of responsibility depends on the type of business, the amount of turnover, the timing of the activity, and much more.

What activities are classified as illegal entrepreneurship in 2016-2017?

Any activity of an individual, the purpose of which is to make a profit (even very small amounts), must be formalized as an entrepreneurship. Even if you sell homemade jewelry or roasted seeds, this already falls under the definition of entrepreneurial activity. The degree of liability and the amount of fines depend on the type of activity and the amount of income received.

In 2016-2017, the activities of individuals are regarded as entrepreneurship on the following grounds:

• wholesale purchases of goods;
• certificates of persons who paid for the purchase of goods or the provision of services;
• placement of advertisements for the sale of goods, the provision of services;
• conclusion of lease agreements for the use of commercial buildings and premises;
• issuance of receipts on receipt of borrowed funds;
• conclusion of partnership agreements with suppliers of raw materials, materials, equipment.

When identifying two or three signs from this list tax office may interpret the activity of an individual as entrepreneurial. If an individual rents out housing, enters into contracts and carries out large sales transactions and pays personal income tax, this is within the law. And if trade transactions are repeated several times without registering an IP, such activity is already considered illegal business, for which fines of various sizes are threatened.

That is, some types of transactions can be carried out by concluding civil law contracts, but you cannot advertise your product. In addition, most firms or individual entrepreneurs will not risk being contacted by an individual doing business illegally.

You can - at the place of temporary registration, by contacting the relevant tax authorities.

The main requirements of Russian legislation for the registration of IP in 2016-2017

In order to have the right to carry out commercial activities on the territory of the Russian Federation, it is necessary to follow a number of simple steps:

• determine the type of entrepreneurial activity and classify it in accordance with OKVED ( all-Russian classifier types of economic activity);
• register as an individual entrepreneur in the tax office at the place of registration;
• make (optional requirement if you will not open a bank account and work with large companies);
• register with a pension fund, social insurance funds, etc.;
• if you are opening a retail outlet, you will need (when providing services) or a buyer's corner (when selling goods). It is also mandatory to regularly submit reports on your business activities, pay taxes and fees, the amount of which is determined by the type of individual entrepreneur and the amount of income. The big advantage of the work of the Federal Tax Service is the opportunity without leaving home. If an entrepreneur hires workers, then he must also calculate and transfer it to the local budget.

Advice: when registering an individual entrepreneur in 2016-2017, it is better to immediately choose a wide range of types of commerce, within which you will be engaged in entrepreneurial activities. The number of activities affects the amount of taxes only if this type is subject to a special fee or requires obtaining permits or licenses.

On responsibility for conducting illegal business in 2016-2017

If an individual conducts entrepreneurial activities illegally, then upon establishing such a fact, he faces administrative or criminal liability.

In what cases is an individual or legal entity brought to administrative responsibility (as of 2016-2017) for illegal business activities:

• Carrying out entrepreneurial activities without registration with the relevant tax authorities entails a fine in the amount of 500-2000 rubles.
• Carrying out illegal business without a license (if this activity requires the obligatory receipt of such a permit). An individual faces a fine of 2000-2500 rubles with the possibility of confiscation of manufactured goods, raw materials and materials, equipment. Penalties for legal entities illegally working without a license can range from 40,000 to 50,000 rubles.
• In case of violation of a special permit or license during the implementation of illegal business activities, violating entities may be issued a warning or fined. Individuals face a fine of 1500-2500 rubles, legal entities - from 30,000 to 40,000 rubles, officials of enterprises - 3000-4000 rubles.
• In case of gross violation of the license, individuals are punished with fines in the amount of 4,000-8,000 rubles, legal entities with fines from 100,000 to 200,000 rubles or suspension of activities for three months.

The onset of criminal liability for conducting illegal business (regulated by Article 171 of the Criminal Code of the Russian Federation) may entail cases of conducting economic transactions without registering an individual entrepreneur or legal entity with illegal income in excess of 1,500,000 rubles (large amounts) and 6,000,000 (especially large sizes). Large administrative penalties and criminal liability may also result from the implementation of illegal entrepreneurship in areas requiring a license (sale of tobacco or alcohol products, security services, transport services, etc.), without obtaining permits.

When committing illegal entrepreneurial activities on a large scale, an individual entrepreneur faces a fine of 300,000 rubles or a penalty for the amount of income that the individual entrepreneur received during two years of conducting commercial operations without registration. Another punishment may be compulsory work for up to 480 hours or arrest for 6 months. In case of illegal entrepreneurship on an especially large scale, the violator faces a fine of 100,000 - 500,000 rubles, recovery of income for 1-3 years, 5 years of forced labor or 5 years of imprisonment with the need to pay 80,000 rubles or 6 months of income.

In addition to individual entrepreneurs and legal entities, individuals are also required to submit information about their income to the tax office. For failure to provide a declaration or the inaccuracy of the specified data, the subject is threatened with a fine or forced labor for 1-3 years (the amount of the penalty and the term of imprisonment or forced labor are determined in accordance with the amounts that were not declared and the type of activity). In order to avoid criminal liability, in case of violations on a particularly large scale, the violator can pay all the amounts of fines and penalties and thus avoid forced labor or imprisonment.

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Even if you just want to sell fried seeds, sew or knit at home, quietly and legally making a profit from it, it is better to register as an individual entrepreneur, so you can avoid many problems - you will not face fines or other administrative penalties. You do not need to do business, you just need to pay taxes on time and file income tax returns on time.

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According to government estimates, about 20 million able-bodied Russians do not declare the sources of their income. Approximately half of them run their own, often small, illegal businesses. What is the penalty for illegal entrepreneurial activity in 2019?

What is entrepreneurial activity

But first, what is entrepreneurial activity? How is it different from employment? And why is illegal business prosecuted by law?

The concept of entrepreneurship is established by Article 2 of the Civil Code. This is an independent, risky activity aimed at systematic profit. At the same time, the entrepreneur receives income not from the execution job duties but from the sale of goods, the performance of work, the provision of services, the use of property.
If you compare an entrepreneur with an employee, you can identify a number of differences.

Entrepreneur	hired worker
Independently establishes relationships with the consumer, performing the entire cycle from finding an order for a product or service to receiving payment for it.	Works under the control of the employer, often performs only one function in the consumer service cycle. Receives payment from the employer.
He risks not getting paid for his goods and services, but if successful, manages the income from the business at his discretion.	Protected labor law, receives a salary, regardless of personal results. In this case, the employer pays the employee only a part of the profit earned by him.
Independently provides its own pension and health insurance, pays taxes on income received from business.	The employer pays for the pension, social and medical insurance of the employee, he also withholds and transfers personal income tax from the salary.

If business is conducted without registration, then the state does not receive anything from such a commercial entity. But at the same time, an illegal entrepreneur enjoys all the rights of a citizen, plus he can count on free medical care and a social pension. And this happens at the expense of law-abiding business and its employees, who just pay taxes and contributions.

The state is trying to return the shadow business to the legal field in various ways, including by imposing administrative, tax and criminal sanctions.

Administrative sanctions

The current norms of Article 14.1 of the Code of Administrative Offenses of the Russian Federation establish a fine for illegal business activities in 2019 in the amount of 500 to 2,000 rubles. If a citizen is illegally engaged in activities that require a license (which is issued only to registered entities), then the fine here is slightly higher - from 2,000 to 2,500 rubles.

In addition, a registered organization or individual entrepreneur receives the status of a commercial entity and is required to comply with numerous legislative provisions. This is, at a minimum, the timely submission of reports, the payment of taxes and contributions, the fulfillment of the obligations of the employer, the application cash register.

At the same time, fines are imposed on legal traders for violating the laws governing business, and these are often very significant amounts. For example, for placing advertisements without the consent of the local administration, a legal entity can be fined up to 1 million rubles.

Thus, if we talk about administrative responsibility for illegal business, then the sanctions currently applied do not have any stimulating function. Moreover, this situation provokes even law-abiding citizens who cannot compete with illegal businesses to go into the shadows.

Tax Penalties

Tax legislation does not establish liability for illegal business, but imposes penalties for non-payment of tax or non-registration.

If it is proved that income was received from illegal business, from which tax was not paid, then a fine is collected under Article 122 of the Tax Code of the Russian Federation. This is 20% of the tax amount, and for deliberate evasion of payment - 40%. The tax itself and penalties on it will also have to be paid.

If an entrepreneur conducts real activities for more than 30 days without registration and registration with the Federal Tax Service, then this threatens with a fine of 10,000 rubles under Article 116 of the Tax Code of the Russian Federation.

Criminal liability

A fine for illegal entrepreneurial activity in 2019 may also be imposed as part of criminal prosecution. The amounts here are significant - up to 300 thousand rubles or the income of a convict for a period of up to two years.

However, you can be held criminally liable if the proven income from illegal business was received on a large scale, and this is more than 2.25 million rubles. Anything below is subject to administrative jurisdiction, i.e. under fines from 500 to 2500 rubles.

If the criminal income is received by an organized group, or its size is recognized as especially large (more than 9 million rubles), then the fine rises to 500 thousand rubles, or up to three years of income of the convict. Criminal liability for illegal entrepreneurship also provides for real terms of restriction of freedom - from six months to five years.

Illegal entrepreneurial activity (punishment of an individual)

Why register a business

As can be seen from the size of the sanctions, and judging by the number of illegal businessmen, the established responsibility for illegal entrepreneurial activity does not fulfill its motivating function.

However, every year it becomes more and more difficult to conduct activities without registration, and the reason here is not at all in state control. The choice in favor of registered business entities is made by consumers themselves.

If a product or service is obtained from an illegal businessman, then the consumer is not protected by anything here. He cannot receive a document confirming payment, apply for a warranty repair, replace a defective product, demand a quality work or service.

If we talk about the b2b segment, then it is more difficult for an entrepreneur without registration to find a business partner. The efforts of the tax authorities to control the execution of business transactions are bearing fruit. In order not to be accused of tax evasion, counterparties conduct a thorough analysis of the future partner before concluding transactions. And the first point of this analysis is the presence of registration in the state register of individual entrepreneurs or legal entities.

A new form of entrepreneurial activity

Usually, when talking about registering a business, they mean an individual entrepreneur or LLC. But although these organizational and legal forms are very popular, they have a lot of disadvantages. This is a fairly high tax burden, and the complexity of management, and the need to constantly submit difficult reports, and the use of a cash register, etc.

For several years now, the state has been trying to create a new form of entrepreneurial activity - self-employed persons. In fact, this category includes all small sellers and performers who have a small income and do not attract employees to their business.

Of course, they could register as an individual entrepreneur, but the following nuances stop them:

• the irregular nature of the business;
• the need to pay insurance premiums (in 2019 this is at least 36,238 rubles), even if the activity does not bring any profit;
• the obligation to use a cash register, the acquisition and annual maintenance of which exceeds 25 thousand rubles;
• complex reporting, for which you have to pay an accountant.

What was needed was a mechanism that would allow these individuals to work legally, but simplify the accounting of their income and the payment of taxes.

However, the first experiment aimed at bringing illegal entrepreneurs out of the shadows failed. A very narrow circle of performers was classified as self-employed: tutors, domestic staff, nannies and nurses. Moreover, they do not pay taxes and contributions for two years, but simply register with the Federal Tax Service.

The unregulated status of the self-employed, as well as the need for subsequent registration as an individual entrepreneur, did not bring results. Across Russia, a little more than 1,000 people were registered in this capacity, which is incomparable with millions of illegal entrepreneurs.

But at the end of June 2018, the Federal Tax Service came up with a completely new initiative that could really radically resolve the situation. It is proposed to refer to self-employed individuals who independently sell goods and provide services in various business areas.

Moreover, the tax rate depends on the consumer of the product or service. If this is an ordinary individual, then a self-employed person will pay only 3% tax on the income received. If the buyer or customer is a legal entity, then the tax rate will be 6%.

And most importantly, the tax payment system has been simplified as much as possible. Payment confirmation for the buyer is issued through a mobile application, i.e. no cash register. The self-employed will be registered in personal account on the website of the Federal Tax Service, which reflects their income. Each transaction must be taxed. If there is no income, then no tax or contributions will have to be paid.

The implementation of this option in practice will make it possible to bring the majority of small businesses out of the shadows, and they will no longer have to apply fines and other sanctions.

According to statistics, in Russia 15% of the population is engaged in business. Every entrepreneur must pay taxes, make contributions to pension and insurance funds.

To avoid these payments, some citizens do not register entrepreneurial activities.

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In this case, she considered illegal. The penalty for illegal business depends on the severity of the violation. One person can get off with a small fine, the other will be criminally liable.

Conceptual apparatus

What is illegal business?

Entrepreneurial activity is the actions of a citizen aimed at making a regular profit.

Entrepreneurship is not considered lump sum providing a service or selling a product.

In other words, if a person sold an old TV or helped a neighbor assemble furniture for a small fee, he is not considered an entrepreneur and is not of interest to the inspection authorities.

However, systematic selling old household appliances or furniture assembly services refers to entrepreneurial activities.

Three confirmed transactions are enough for the tax office to impose a penalty.

Thus, illegal entrepreneurship is considered to be the activity of a citizen, as a result of which he makes regular profits, but carries out this activity without appropriate documentary registration or in violation of registration.

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signs

It is often difficult for the Tax Inspectorate to obtain evidence of illegal acts of a citizen. Entrepreneurship can be recognized as illegal under the following conditions:

In addition, testimonies of buyers, recipients of services, employees can confirm illegal activity.

If the entrepreneur finds a warehouse with goods, the current trade point, notebooks and activity books, it will also be irrefutable evidence implementation of entrepreneurial activity.

Forms

Doing business is considered illegal not only in the case of work without registration, but also in violation of business rules. The following forms of such activity are defined in the law:

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Kinds

Not all activities without registering an individual entrepreneur or LLC fall under the concept of illegal entrepreneurship. Illegal businesses include:

1. Provision of personal services without proper registration with the tax authority.
2. Carrying out passenger and freight transportation without a license.
3. Providing medical, veterinary and other services without a license.
4. Trade in industrial and grocery goods on the market.
5. Production of goods without certification.
6. Carrying out business activities that do not correspond to those specified in the application during registration.

It should be noted that the leasing of residential premises by an individual is not an illegal business.

The citizen must at the end of the year submit an income tax return and pay personal income tax in the amount of 13% of the profit received. Also, the resale of housing is not a business if it is of a one-time nature.

A separate line in the law is street trading.

Do I need to register an IP in order to to trade on the street?

Entrepreneurial activity of a citizen is not considered in two cases:

• if he sells flowers, vegetables, herbs grown in his garden;
• if he sells handmade products at the fair.

For such a trade administration permission required business entity that is the owner of the area.

Such fairs are regularly held so that people can sell products. own production. The activities of such fairs also strictly regulated by law.

In the case when a citizen sells goods of his own production in places not designated for the fair (near the metro, near shops, on the forecourt), his activity falls under the category of illegal.

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Legislative regulation

Entrepreneurial activity is regulated by the Tax Code of the Russian Federation, the Code of Administrative Offenses (CAO) and the Criminal Code of the Russian Federation.

Revealing the fact of illegal business is assigned to the following services:

Illegal entrepreneurship is detected during inspections carried out by supervisory authorities.

Revealed fact should be recorded in the minutes and brought to court within two months of discovery. If a documenting absent, no penalty can be applied.

Any citizen, having discovered the fact of illegal business conduct, can file a written or oral complaint to the above structures.

Corpus delicti

Illegal entrepreneurial activity is considered criminal according to Art. 171 of the Criminal Code of the Russian Federation. Citizens fall under criminal liability if, as a result of conducting illegal business, they caused damage to the state on a large or especially large scale.

Major damage is considered more than 1.5 million rubles, especially large - more than 6 million rubles. Such citizens are dealt with by employees of the prosecutor's office and the police.

Responsibility

Illegal entrepreneurs are punished depending on the severity of the offence.

They can get off with a fine as part of an administrative penalty or receive a prison sentence.

Activities without a license are punished much more severely than doing business without registering an individual entrepreneur or LLC. For violation of the law, a citizen faces tax, administrative and criminal liability.

tax

Tax liability is borne by entrepreneurs who carried out activities before the moment of registration of the enterprise. In addition to the fine, the citizen will have to pay a percentage of the profits received illegally. Penalties are calculated as follows:

• when conducting an illegal business for less than 30 days - 5000 rubles + income tax;
• when doing business from 30 to 90 days - 10,000 rubles or 10% of the income received;
• when carrying out activities for more than 90 days - 20,000 rubles or 20% of income.

The court may reduce or increase the amount in accordance with the evidence presented.

The amount is calculated taking into account payments to the pension, insurance fund and regional taxes. Citizen will be required to pay after the entry into force of the judgment.

Administrative

Administrative liability for illegal business is defined in Article 14.1 of the Administrative Code.

Punishment applies to citizens carrying out entrepreneurial activities without registration if the profit received did not exceed 250,000 rubles.

This is punishable by an administrative fine in the amount of 500 to 2000 rubles. In this case, there is no litigation, the tax inspectorate applies to the World Court.

Citizen may not even attend in person at the hearing, the judge will issue a writ against him.

For doing business without a license penalties are provided:

• individuals- from 2 to 3 thousand rubles with confiscation of products;
• legal entities - from 40 to 50 thousand rubles with confiscation.

If the conditions of the license are repeatedly violated, the entrepreneur faces a suspension of activities for up to 90 days.

Criminal

Subject to criminal liability illegal activity, which resulted in a profit of more than 1.5 million rubles. Punishment is carried out as follows:

Illicit business is very hard to find, even harder to prove. Difficulties with proof cause a small judicial practice on such matters.

Most often, people who trade via the Internet are punished.

The state is taking additional steps to force citizens to "come out of the shadows." For example, the issue of acquisition of a patent for self-employed citizens.

Do I need to register a company with a small income? Expert opinion:

Article author -

Many Russians receive various kinds of income bypassing the state treasury, that is, without paying taxes and other obligatory payments. Someone sells goods (including via the Internet), others manage to earn money by tutoring or repairs. But not all of them are aware of the risks involved in doing this. Indeed, for entrepreneurial activity, which is considered illegal, serious liability is provided. Therefore, it is important to know what exactly relates to such entrepreneurship and what consequences this activity can lead to.

The definition of illegal business activity will be given below, as well as all the necessary information about the content different types responsibility for it under tax, administrative and criminal legislation. We will tell you what fines and other penalties threaten violating entrepreneurs in 2018-2019.

What is illegal business?

First you need to decide what entrepreneurial activity is in general from the point of view of the domestic legislator. By Civil Code this is an independent activity aimed at obtaining a constant profit from the provision of services, work, sale of goods or use of property, which is carried out at its own risk. This regulatory legal act also stipulates that persons who are engaged in entrepreneurship must be registered in the manner prescribed by law.

Thus, the legislator allows business only on condition that the state registration procedure has been completed. If activities aimed at obtaining a permanent income are carried out, without carrying out the necessary registration actions and obtaining mandatory permits, illegal entrepreneurship occurs.

There can be several forms of its manifestation:

• Doing business without state registration as an individual entrepreneur or legal entity.
• Entrepreneurship without obtaining a license (if such activities are required for the types of activities carried out).
• Entrepreneurial activity in violation of the conditions stipulated by the license.

The fact that illegal business is carried out, namely unregistered activity, is evidenced by certain facts:

• Services are provided, work or other operations are carried out in order to generate income in the absence of an entry on registration as a private entrepreneur or legal entity in the relevant state registers (EGRLE and EGRIP).
• A person is engaged in commercial activities without waiting for the completion of registration or after its cancellation.
• The entrepreneur is engaged in the type of activity that he did not report to the tax authorities during registration or within 2 months after changing specialization.

Consider the following form of illegal entrepreneurial activity - work without a license in the area where it must be mandatory. According to domestic legislation, access to approximately 50 types of entrepreneurship is granted only if a license is obtained. Both activities subject to licensing, without obtaining a permit for it, and non-observance of the terms of its beginning and termination are considered illegal. In other words, if a business in a certain area was launched before the license began to operate, or continued to be economic activity after its termination, it is just as illegal as working without a license. Contrary to the law and entrepreneurship, in the process of which the conditions for using the license are violated.

The following state bodies are empowered to detect facts of illegal entrepreneurial activity:

• Tax service.
• Prosecutor's office and other law enforcement agencies.
• Antitrust Service.
• Authorities issuing licenses.
• Rospotrebnadzor.

Penalty for illegal business activity

An individual who has violated the law by engaging in illegal business in 2018-2019, as before, risks suffering materially. If a violation is detected, it will be prosecuted in the form of a fine. Consider the extent and under what conditions such punishment is applied under tax and administrative legislation.

Tax

Article 116 of the Tax Code provides for penalties for violations related to the registration of economic entities with the tax service. Both individuals and companies face a fine if they conduct business without going through the procedure for tax registration under this code. For such illegal activities in 2018-2019, you will have to pay 10% of the income received during their commission, but not less than 40 thousand rubles.

And even if an application for registration as a taxpayer is submitted, the entrepreneur will be fined if he turned to the tax authorities at the wrong time. In this case, the fine will be 10 thousand rubles. In addition to fines, the perpetrator will have to pay taxes on the amount of illegally obtained income (VAT, on property, personal income tax, etc.)

Administrative

Under Article 14.1 of the Code of Administrative Offenses, persons guilty of doing business without state registration or a special permit (license) are held liable. For them, depending on the content of the violation, the following penalties are provided:

• For individuals doing business without registration as individual entrepreneurs and entities not registered as legal entities - from 500 rubles to 2 thousand.
• Entrepreneurial activity without a license(when required):
  • for individuals - a fine in the amount of 2 to 2.5 thousand rubles;
  • legal entities will have to pay 40-50 thousand rubles;
  • officials are required to pay 4-5 thousand rubles.

Important: at the same time, they can confiscate manufactured products, raw materials and equipment that was used to conduct business.

• Entrepreneurship in violation of the terms of the license:
  • for individuals - from 1.5 thousand rubles. up to 2 thousand rubles;
  • for companies - 30-40 thousand rubles;
  • for officials- 3-4 thousand rubles.
• Gross violation of license requirements:
  • for citizens - 4-8 thousand rubles;
  • for companies - 100-200 thousand rubles;
  • for officials - 5-10 thousand rubles.

Important: instead of a fine, a penalty such as an administrative suspension of activities for a period of up to 90 days can be applied.

Administrative fines for illegal business activities in the near future (already in 2018-2019) may be increased. This will happen if the State Duma adopts the corresponding draft law, which is under consideration. In this case, you will have to pay 3-5 thousand rubles for doing business without registration, and not from 500 rubles. up to 2 thousand, as per the Code of Administrative Offenses currently in force. For work without a license, it is proposed to establish the same penalty.

Criminal liability for illegal business

When entrepreneurial activity that is contrary to the law becomes serious, that is, the amount of income received is significant, the punishment becomes more severe. Under certain circumstances, if the committed is recognized as a crime, the perpetrator is held criminally liable. The decision on such a case is made by the court at the place of residence of the guilty person or at the place of business.

Article 171 of the Criminal Code is devoted to illegal entrepreneurship. To be eligible, the following must occur:

• Business is conducted without registration or with registration, but without a license (if required).
• Such actions have led to major damage to the state, legal entities or individuals, or received large income.

One of the following penalties may be applied to the perpetrator of the described crime in 2018-2019:

• Fine - up to 300 thousand rubles. or in an amount corresponding to the salary or other income of the violator for a certain period, which cannot exceed 2 years.
• Mandatory work - up to 480 hours.
• Arrest - up to 6 months.

Liability can be even tougher if illegal business is conducted under the following circumstances:

• Activities in an organized group.
• Received a particularly large income.

In this case, the perpetrator will be held liable for one of the following types:

• Fine - 100-500 thousand rubles. or an amount corresponding to income for 1-3 years.
• Forced labor - up to 5 years.
• Imprisonment - up to 5 years. Such punishment may be accompanied by a fine of up to 80 thousand rubles. or in the amount of income received during a period of up to 6 months.

In a separate article 171.3, responsibility for illegal entrepreneurial activity in the field of alcohol and alcohol circulation is derived. If such products are produced, purchased, supplied, stored, transported or sold at retail without a license (when it should be) on a large scale, one of the following negative consequences may occur in 2018-2019:

• Fine - from 2 to 3 million rubles. or in an amount equivalent to the income received for one to three years.
• Forced labor - up to 3 years.
• Imprisonment - up to 3 years.

In addition to the main punishment, the perpetrator may be deprived of the right to conduct activities of a certain type for a period of up to 3 years. If the same actions are committed with aggravating circumstances, that is, the amount of damage is especially large or an organized group acted, the liability will be even more serious - up to imprisonment for 5 years.

Important: a large amount of damage referred to in article 171 of the Criminal Code is considered to be 1.5 million rubles, and especially large - 6 million rubles. As for Article 171.3, here large damage is illegally produced or sold alcohol (alcoholic beverages) in the amount of more than 100 thousand rubles, and an especially large amount - 1 million rubles.

Summing up

Illegal entrepreneurial activity is the provision of services, the performance of work, the sale of goods, the transfer of property for use and other actions aimed at repeatedly generating income. In order to acquire the right to conduct such activities, it is necessary to pass state registration and, in some cases, obtain a license. If you do not do this and start doing business, it will be declared illegal.

For the implementation of unregistered activities, liability is provided for in tax, administrative and criminal legislation. Such actions lead to a fine, the amount of which depends on the severity of the offense. It is possible that already in 2018-2019 there will be a tightening of administrative responsibility for illegal entrepreneurship, since a corresponding bill is under consideration in the State Duma.