Engaging in illegal business activities adm responsibility. Wrong business: where and how to report illegal business activities? What it is

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What is illegal business

Everyone at least once concluded this or that transaction, performing a certain job. Often such transactions are of a personal nature, and therefore are not of interest to the tax authorities. Transactions of another category are concluded on an ongoing basis, as a result, a person regularly has income. Such transactions are within the scope of the interests of the tax inspectorate.

For example, you bought a car, and then decided to profitably resell it to a neighbor and made a profit from the transaction. These actions will not be regarded as entrepreneurial activity, since the transaction is concluded between citizens and is of a single nature. However, if a person regularly resells cars in order to make a profit, then such a person acts as an entrepreneur in civil circulation.

Attention! If the specified person is not registered as an individual entrepreneur, then his activities are outside the law. As practice shows, some citizens deliberately avoid registration in order not to pay taxes, while others are honestly mistaken and cannot give a correct assessment of the activities they are engaged in, not considering themselves individual entrepreneurs.

There are various forms entrepreneurial activity, For example, repair work, provision of tourist services, wholesale trade products, etc.

Often people who are engaged in entrepreneurial activities consider themselves freelancers.

As a rule, these persons receive a salary in an extra-contractual manner or according to a work contract. This means that the tax burden falls on their counterparty under the contract.

Therefore, an activity that generates income, but is not permanent, is not entrepreneurial. This type of activity does not entail the onset of legal liability.

According to the provisions of article two of the Civil Code Russian Federation Entrepreneurial activity is understood as an activity that is carried out independently, is risky in nature and aims to make a profit. Such activities are carried out by a person who is registered in accordance with the requirements of the law, in various forms: work or services, sale of property.

What is the difference between freelancing and entrepreneurship? Entrepreneurial activity is carried out on a regular basis and has the goal of making a profit. If, for example, a person has received a large amount of income as a result of a transaction for the sale of his country house, it will not be regarded as entrepreneurial activity.

Signs of illegal business activity

The following signs are distinguished:

• the systematic extraction of profit, which is the purpose of the activity;
• risky nature of activities and independence in the economic aspect;
• use of property, sale of goods and provision of services for profit.

It is required to distinguish between the listed signs and forms of illegal entrepreneurial activity, which are contained in Article 171 of the Criminal Code of the Russian Federation.

Under independence economic activity refers to the direct participation of a person in civil circulation. The person acts on his own behalf.

Therefore, economic activity that is not independent in nature cannot be considered entrepreneurial. Such activity qualifies as an employment relationship that arises between an employee and an employer.

Important! As a rule, registration of such activity is carried out in the form of an employment contract. If we compare it with a civil law contract, a number of differences are revealed. The main difference lies in the subject matter of the contracts.

The subject of the employment contract is the labor activity of the employee, and the subject of the civil law contract is the result of such activity. After clearance labor relations the employee is enlisted in the staff of the employer, relations of subordination are established between them, and disciplinary measures apply to the employee.

Civil legal consequences

According to Part 4 of Article 23 of the Civil Code of the Russian Federation, a person who actually carries out entrepreneurial activities, but is not registered as an individual entrepreneur, is not allowed to refer to the absence of such registration in matters of transactions concluded by him.

This means that during the judicial review of the case, the judge has the right to apply to concluded transactions the rules that regulate entrepreneurial activity: laws No. 135-FZ, No. 184-FZ, No. 315-FZ and No. 294-FZ.

Tax Penalties

Please note! If a person is engaged in activities permitted by law without registration, the following circumstances will affect the amount of the fine:

• the term for the implementation of illegal entrepreneurial activity until the moment of registration;
• the amount of profit that the person has received or could receive. The amount is calculated in accordance with the data received and is not tied to the actual received money. For example, if the documented amount of the transaction is 50,000 rubles, and the person received only 35,000 rubles, then the amount of 50,000 rubles is taken into account.

Consequently, when the fact of conducting illegal business activities is revealed, the person is held liable for the fact of concealing information about such activities and for non-payment of the relevant income taxes.

According to the provisions of the Tax Code of the Russian Federation (Article 116), if you registered as an individual entrepreneur thirty or more days after the start of your activity, you are liable to pay a fine. The amount of the fine is 10,000 rubles. If you have been illegally active for three or more months, the fine will be 10% of the estimated income. In this case, the minimum fine is 40,000 rubles.

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Indemnification cases:

• if the age of the person carrying out the specified activity is less than 16 years;
• if the three-year limitation period has expired;
• if the reason for not registering is valid (hospital stay, natural disaster, etc.)

Mitigating circumstances (for example, a difficult financial and material situation) will help reduce the amount of the fine imposed by two or more times. If there are aggravating circumstances (for example, if the offense is repetitive), then the amount of the fine will be increased by two or more times.

For non-payment of taxes on profits that a person received in the course of entrepreneurial activities, the following fines will have to be paid (Article 122 of the Tax Code of the Russian Federation):

• 20% of the tax amount;
• 40% of the tax amount if there is evidence of deliberate concealment of income.

In this case, tax is payable on the profit that was received during the conduct of this activity.

Watch the video. Illegal business activity:

Administrative responsibility

Remember! For the implementation of illegal business activities, administrative liability in the form of a fine is also applied to a person in accordance with the provisions of the Code of Administrative Offenses of the Russian Federation. Penalties are imposed in the absence of registration and the absence of an appropriate license.

General provisions and amounts of possible fines

Currently, the amount of an administrative fine for carrying out entrepreneurial activities in the absence of registration is from 500 to 2000 rubles (Article 14.1 of the Code of Administrative Offenses). The size of the fine is affected by the scale of activity and other circumstances.

If a person violated the licensing norms and did not obtain the necessary license, he is obliged to pay the following fines (Clause 2, Article 14.1 of the Code of Administrative Offenses):

• 2000-500000 rub. for individual entrepreneurs;
• 4000-5000 rub. for an official;
• 40000-500000 rub. for legal entity. This applies to confiscation of property.

If the licensing requirements are violated, fines of the following size are additionally imposed (Clause 3, Article 14.1 of the Code of Administrative Offenses):

• 1500-2000 rub. for individuals. In the presence of gross violations: 4000-8000 rubles;
• 3000-4000 rub. for officials. In the presence of gross violations: 5000-10000 rubles;
• 30000-40000 rub. for organizations. In the presence of gross violations: 100,000-200,000 rubles. At the same time, the activities of the organization are suspended.

Attention! Penalties for illegal business in certain categories:

• for illegal trade in medicines (Article 6.28 of the Code of Administrative Offenses of the Russian Federation): 1500-3000 rubles. for individuals, 5000-10.000 rubles. for officials and 20,000-30,000 rubles. for organizations;
• for conducting illegal gambling outside gambling zones (Article 14.1.1 of the Code of Administrative Offenses and Article 171.2 of the Criminal Code of the Russian Federation): 700,000-1,000,000 rubles. Confiscation of equipment and imprisonment for up to six years are also applicable;
• for the sale of things that are withdrawn from civil circulation or limited in it (weapons, potent poisons, etc.) (Article 14.2 of the Code of Administrative Offenses): 1500-2000 rubles. for individuals, 3000-4000 rubles for officials, 30000-40000 rubles for legal entities. In this case, the property will be confiscated;
• fine for conducting illegal business activities in the transport industry (Article 14.1.2 of the Code of Administrative Offenses): 5000 rubles. for citizens, 100,000 rubles. for individual entrepreneurs;
• for organizing illegal games in special gambling zones, the amount of the fine is as follows (clause 4, article 14.1.1 of the Code of Administrative Offenses): 2000-4000 rubles. for citizens, 30,000-50,000 rubles. for officials, 500,000-1,000,000 rubles. for legal entities.

A separate type of offense is the illegal sale of tickets for the 2018 World Cup matches.

If a person resold tickets for profit in the absence of required documents, then he is obliged to pay a fine (Article 14.15.2 of the Code of Administrative Offenses), the amount of which is equal to 25 times the cost of a ticket for individuals, 30 times the cost of a ticket for officials and 500,000- 1000000 rub. for organizations. For the sale of fake tickets in the absence of corpus delicti, individuals are required to pay a fine in the amount of 50,000 to 70,000 rubles, officials - from 150,000 to 200,000 rubles, and legal entities - from 1,000,000 to 1,500,000 rubles.

Running a business involves paying taxes. But novice businessmen are sometimes in no hurry to formalize their activities, considering it too insignificant.

Dear readers! The article talks about typical ways to solve legal issues, but each case is individual. If you want to know how solve exactly your problem- contact a consultant:

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How is illegal business punished in 2020? Illegal business activity is always a violation of the law.

Moreover, in order to recognize the fact of a violation, the amount of income received and the duration of its receipt do not matter.

It is enough to prove that the purpose of the subject's actions is aimed at making regular profits. What liability is provided for illegal entrepreneurs in 2020?

Basic moments

A citizen who sells goods or services and bears certain risks in an effort to make a profit is considered an entrepreneur, and his activity is recognized as entrepreneurial.

Starting your own business, you need to take into account the legislative norms. In particular, it is required to register with the tax authorities, having received the status of an individual entrepreneur or legal entity.

Tax registration as a business entity entails certain obligations.

It is necessary to keep records on the activities carried out, pay taxes and fees in a timely manner. The amount of taxes depends on the chosen regime and the amount of systematic taxation.

According to the law, income that a citizen receives more than twice during the reporting year is recognized as systematic. Accordingly, entrepreneurial activity is recognized as an activity that brings systematic profit.

What it is

Illegal business activity is doing business without proper registration.

Some citizens believe that if you run a small business with a small income, then you can not be afraid of the attention of the tax authorities.

This is not so, punishment can be imposed even for minor offenses. But when is it necessary to obtain the official status of an entrepreneur?

You need to understand that the purpose of business legalization for the state is adequate taxation. For example, when renting out housing, it is not necessary to issue an IP.

If the owner rents an apartment under an agreement and pays regularly, then he does not violate the law. You can by paying tax on each transaction.

Conducting profitable activities without paying taxes is considered illegal business.

That is, any law-abiding citizen, if he suspects non-compliance with the law, can apply to the appropriate authorities with a request to verify the fact of violation.

Where to report a violation

An individual who is a consumer of a product or service can identify the entrepreneur's illegal activities.

When this has caused trouble or harmed health, investigations can be initiated on suspicion of illegal business conduct.

Employees of the bodies to which the appeal is submitted are required to check:

• availability of activity registration;
• availability (if any);
• compliance with the rules and deadlines for licensing.

Note! Lack of the required license is more severely punished by law than lack of registration.

Where to report illegal business activity? Citizens have the right to apply to such bodies as:

• law enforcement agencies;
• tax office;
• prosecutor's office;
• antitrust service.

If necessary, other structures can be involved. For example, independent communities and public organizations, where you can complain in case of difficulties with official structures.

But such methods rarely have to be resorted to. In 2020, such situations are becoming less and less common.

If state bodies discover during the verification the fact of illegal activity, then the violator is unlikely to be able to avoid punishment. But in order for the verification to be carried out, it is necessary to correctly issue the appeal.

How to write an application (sample)

There is no standard form for filing an application for illegal business. The appeal is made in free form.

You can, of course, use ready-made forms (when submitted on behalf of the organization), but in this case the situation is simplified only by the presence of a “header” with details.

Therefore, you need to be prepared that the authorities that accepted the application will check the compliance of the declared personal and contact data. You will not be able to contact anonymously.

The general structure of the application is as follows:

Depending on where the application is being made, specific considerations may need to be taken into account.

So when contacting the tax authorities, you need to know that this department deals exclusively with taxes. Accordingly, it is not necessary to expect proceedings in the intricacies of the Criminal Code of the Russian Federation and the Code of Administrative Offenses of the Russian Federation.

You should contact the Federal Tax Service if it is known for certain or with a high degree of probability that there is no registration of an entrepreneur, there is tax evasion, there is no license.

For example, illegal activity has caused harm to health and life, or there is reason to believe that the activity poses a threat to others.

Citizens most often turn to the prosecutor's office when a reply has been received on a previously filed application to the police.

Video: illegal business activity

If you suspect an economic crime, you can contact the OEB. Specialists of the economic security service will independently send requests to other bodies.

Please note that the answer will not be provided immediately. It usually takes several days to verify the appeal and assign it a number.

It takes about thirty days from the moment of registration of the application to the provision of a response. In practice, the answer may be late.

If it is fundamentally important for the applicant to restore justice, then a second appeal may be required to remind himself.

What is the responsibility for violations

Tax, administrative and criminal liability is provided for illegal entrepreneurial activity.

In case of confirmation of the fact of violation, the tax authorities will recover tax compensation from the violator:

• the amount of unpaid taxes;
• late tax penalties.

Recovery is carried out in a judicial proceeding. Therefore, the punishment will be imposed not only according to the Tax Code of the Russian Federation, but also according to the Code of Administrative Offenses of the Russian Federation. Administrative liability involves the imposition of a fine.

When illegal activity caused damage to the state or citizens, then criminal liability arises.

Prosecutors in such cases are the police and prosecutors. Punishment ranges from a hefty fine to forced labor or imprisonment.

How can you actually prove

When filing a complaint about illegal business activity, it is desirable to have evidence of a violation.

These may be:

Evidence may vary. The main thing is that they confirm that the activity is carried out systematically and illegally.

Amount of the fine

Any state traditionally strictly regulates the conditions under which its citizens and foreigners can engage in entrepreneurial activities, so if you plan to open your own business, it is imperative to know the relevant legislation. Illegal entrepreneurial activity may entail liability commensurate with the scale of the business and the damage that the state has received from the actions of the entrepreneur.

The concept of entrepreneurial activity carried out outside the law

To be illegal, an activity must first be entrepreneurial, that is, it must meet several basic requirements:

• carried out independently and at your own risk. A driver or any other employee who works for a person doing business illegally is not subject to any liability. Although in practice courts often take the opposite position;
• aim systematic obtaining income. A single sale and purchase transaction or the provision of any service for payment is not a business activity;
• the source of income for the entrepreneur is the use of property, the provision of services or the sale of goods.

That is why an entrepreneur will be a grandmother who comes to the metro every Monday to sell vegetables from her garden, but there will not be a person who has sold not even one, but several real estate objects belonging to him. If the latter is not a systematic activity of buying and selling, but simply a series of transactions, the seller is not responsible.

According to the law, any person who systematically receives income from any activity can be considered an entrepreneur and be held accountable, including those who traditionally do not consider themselves entrepreneurs: freelancers, farmers who sell their products, people of creative professions.

Only landlords who rent out their owned but unused real estate are exempted from liability for carrying out entrepreneurial activities without registration, although in this case they are not exempted from the obligation to pay personal income tax (this exception is spelled out in Resolution of the Plenum of the Supreme Court of the Russian Federation of November 18, 2004 No. 23 ). All landlords are released from liability, regardless of the method of acquisition, the number of real estate objects and the amount of income received.

Whether the activity of a citizen is entrepreneurial is determined in each case individually. The Plenum of the Armed Forces of the Russian Federation several times pointed out that only systematic activity can be called entrepreneurial, as can be judged by the range of goods sold, its origin, the frequency with which a person is engaged in trade or the provision of services, and other signs (Resolution of the Plenum of the Armed Forces of the Russian Federation dated 24.10. 2006 No. 18).

Also Civil Code the criteria that define activity as entrepreneurial include state registration of a legal entity or registration of a citizen as an individual entrepreneur.

But in reality, trade without registration does not cease to be entrepreneurial activity. Non-compliance with the requirements of the law will only entail the onset of liability, but will not relieve the entrepreneur of the obligation to answer for the obligations that he assumed by doing business illegally. Therefore, in addition to claims from regulatory authorities, an entrepreneur can receive a subpoena and civil lawsuits from counterparties if his activities have caused damage to them.

Illegal business activity: liability and possible fines

There can be several violations of the law when doing business:

• lack of registration. And the moment state registration- this is the moment of making an entry about a legal entity or individual entrepreneur (individual entrepreneur), therefore, it is impossible to do business until the end of the registration procedure;
• activities without a license, when necessary (for example, illegal trade in alcohol);
• activities with violations of licensing conditions (only administrative responsibility).

What type of liability a person will be held to depends on the amount of income received. It should also be borne in mind that if law enforcement agencies are interested in you, in addition to being directly responsible for trading or providing services without registration, you may face punishment under other related articles of the Code of Administrative Offenses or even the Criminal Code of the Russian Federation (for example, when combining illegal trade with trade in unmarked goods).

Criminal liability under Art. 171 of the Criminal Code of the Russian Federation

This is the most serious of the possible consequences of violating the norms of the legislation on the registration of legal entities and individual entrepreneurs and licensing rules. A criminal record closes many doors for a person, including access to credit resources in the same volume.

According to Art. 171 of the Criminal Code of the Russian Federation, it can be qualified to conduct business without registration or without obtaining a license (when this is a mandatory legal requirement), if this activity caused major damage to the state or third parties or allowed to receive income on a large or especially large scale (this is 250 thousand and 1 million rubles, respectively).

Fine for illegal entrepreneurial activity - up to 500 thousand rubles or in the amount of the convicted person's income for a maximum of three years, forced labor for up to 5 years, arrest for up to 6 months, or even imprisonment for up to 5 years. It is quite difficult to prove illegal entrepreneurial activity with the receipt of such income, therefore the article is rarely applied. But if law enforcement officers set themselves such a goal, with the appropriate scale of business, the application of Art. 171 of the Criminal Code of the Russian Federation is a very real prospect.

After the fact of carrying out entrepreneurial activities in violation of the law has been recorded, law enforcement agencies must prove two facts:

• the fact that the person was engaged in entrepreneurial activity;
• the fact that the person received income in excess of 250 thousand rubles or caused damage by his actions in an amount higher than indicated.

Most often, in order to prove that a person really trades or provides services, a test purchase is made. Evidence of income can be bank statements, primary accounting documentation, testimony of counterparties and other witnesses, an assessment of the value of goods seized from the entrepreneur.

If the entrepreneur was brought to criminal responsibility, the court in most cases is limited to a fine, but it should always be borne in mind that there is also the possibility of applying the highest penalty for this article - imprisonment. To do this, you just need to receive income on an especially large scale or commit a crime by an organized group of people (for example, together with your accountant).

If law enforcement officers managed to prove the fact of conducting illegal business activities, but failed to prove the receipt of income on a large or especially large scale, the crime will be reclassified as an administrative offense.

Administrative responsibility

This type of liability is used more often, as it does not require proven income. Most often, street vendors or other persons trading without registration are brought to justice. Administrative fine for trading without registering an individual entrepreneur under Art. 14.1 of the Code of Administrative Offenses of the Russian Federation:

• from 500 to 2 thousand rubles for entrepreneurial activity without registration (for example, a fine for illegal trading on the street);
• for entrepreneurial activity without a license - from 2 to 50 thousand rubles with confiscation of all products and raw materials (for example, a fine for illegal trade in alcohol). The amount of the fine depends on who committed the offense, the mildest punishment for an individual, the most severe for a legal person;
• for entrepreneurial activity in violation of the terms of the license - from 1.5 to 40 thousand rubles;
• behind gross violation license conditions - from 4 to 50 thousand rubles with the possibility of suspending the activities of a legal entity for up to 90 days.

An offense is proved in the same way as a crime under Art. 171 of the Criminal Code of the Russian Federation: a test purchase is made, proving the fact of conducting activities or conducting it in violation of the terms of the license. The rest of the evidence base is collected as needed.

Tax Liability

The main reason why there is liability under the above articles is that a person who is not properly registered does not pay taxes to the budget. Therefore, having discovered a violation, the tax service will try to compensate for this damage. Therefore, an individual or legal entity is waiting for a fine for illegal trade in the amount of 10 thousand rubles plus 10% of the income received from illegal activities (Article 116 of the Tax Code of the Russian Federation).

In addition, the tax service will accrue all taxes due for the time of work without a license.

When bringing to tax liability, it should be remembered that the Federal Tax Service must prove your guilt in court in order to achieve repayment of debts to the budget of the Russian Federation, therefore, with competent legal support, the amount of claims can be reduced.

How to avoid liability for trading without registration?

It's not about how to run a business without registration and sleep peacefully. In this case, there is no solution: sooner or later, regulatory authorities will become aware of your activities during a scheduled inspection, from competitors or a dissatisfied client. Therefore, for doing business, it is better to choose the least expensive form of legal entity to maintain or register as an individual entrepreneur.

But you should always remember that in order to hold you accountable, the regulatory authorities must comply with all formal requirements. One of the ways to evade responsibility is to challenge the drawn up protocol on an administrative offense. If the judge sees significant errors in it, the protocol will be sent for revision. Correction of errors and re-consideration take time, and two months after the protocol is drawn up, it is no longer possible to hold a person accountable.

But often when selling several properties or concluding other large transactions individual the tax office has many claims and the seller is called in to explain the fact of receiving income. In this case, you should not be afraid if you really do not conduct business (even if there has been an underestimation of the cost):

• come to the "conversation" with a lawyer;
• insist that there is no systematicity in your activity in selling or buying something, you are not going to do business in this area. No one can prove otherwise;
• refer to the right of the owner to dispose of his property as you please.

Even if you sold real estate to a family member at a lower cost to minimize taxes or simplify inheritance, the state authorities will not be able to present any reasonable claims against you, so you can go to the tax office with a clear conscience. Even if you have made several transactions (more than two per year, making it possible to talk about systematicity), it will be almost impossible to prove the receipt of income.

But if you are afraid of criminal prosecution (and if a case has already been opened, you should always be afraid of it), it is better to hire an experienced lawyer as soon as possible, he will help assess the risks in a particular situation and correctly formulate and defend your position.

Illegal entrepreneurial activity, especially when it brings significant profit, will very quickly be of interest to tax and law enforcement agencies. In most cases, the risk is not worth the possible income, so it is better to formalize your activities in accordance with the requirements of the law. But if you find yourself in a situation that threatens to bring you to administrative or criminal liability, it is important to seek legal help as soon as possible - it can be quite a difficult task to formulate your position correctly and defend it in court on your own.

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.

Dear readers! Our articles talk about typical ways to solve legal issues. If you want to know how to solve exactly your problem - call by phone free consultation:

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.

Illegal business - more in the video:

What is the responsibility for the illegal sale of alcohol? find out right now.

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:

What happens if you sell alcohol to a minor? Learn about it from ours.

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 in the tax office.
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.

What are the consequences illegal business? Find out from the video:

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 there was no documentation, then punishment cannot 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

Illegal activities are criminalized 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:

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