What is the administrative penalty for illegal. What is the punishment for illegal business activity

What punishment is provided in 2018 if business is carried out with violations - non-payment of taxes, lack of a license, contract, etc.?

It is not always the provision of services in a friendly way for a fee, as well as doing business, promises only income and profit. According to the legislation of the Russian Federation, for conducting illegal business activities, fines and criminal penalties are provided, up to and including imprisonment.

Violation of the Federal Law of the Russian Federation may be due to ignorance of legal issues, as well as intentionally, for the purpose of enrichment. Depending on the form of violations, the amount of profit and the duration of the period of unauthorized entrepreneurship, a citizen may be subject to administrative and criminal liability.

How not to cross the line of the law, pay income tax in a timely manner and find out the permissible limits of independent entrepreneurship? For any questions, it is best to contact an experienced lawyer. Our company offers a range of services - from free consultation on the website and by phone to legal protection in court.

Illegal entrepreneurship should be understood as doing business in one's own interests, but without formalizing any relationship (regarding one's own work or an employee).

What activities qualify as illegal:

• independent conduct of business by an individual / legal entity;
• the purpose of the activity is the systematic receipt of income;
• type of entrepreneurship - the provision of services, the sale of goods, etc.

The provision of services on a paid basis once does not require official registration at the tax office. It is necessary to register a business if you plan to work on an ongoing basis with different people / organizations.

Note!

The main difference between illegal entrepreneurship is the absence of labor agreements in any form (civil law contract, labor agreement, official employment, etc.).

Types of illegal business

Any activity that does not comply with the requirements of the law falls under the criminal and administrative article of the Federal Law of the Russian Federation and is recognized as illegal. If one of the points is applicable to business, then you should think about legalizing income:

• entrepreneurship is carried out without registration of an individual / legal entity in the tax office - individual entrepreneurs, LLCs, JSCs, farms, etc.;
• activities do not correspond to those stated in the documentation (for example, instead of individual entrepreneurs for tailoring, breeding and sale of animals, sale of alcoholic beverages, etc. is carried out);
• lack of licenses and permits;
• the information provided to the registration authorities is deliberately false.

As an example, we can cite several main types of illegal business in 2018, for which criminal / administrative liability occurs:

• rental of housing, rental of vehicles and equipment;
• freight and taxi services;
• construction, repair and household services to the population;
• interpretation/written translation, programming, author's texts, etc.

For each of the violations, punishment is provided, which entails the imposition of a fine and criminal liability.

Remote work (programming, freelancing, tutoring, etc.) also refers to entrepreneurship and must be officially registered in one of the forms - individual entrepreneur, civil law contract with an individual, employment, etc.

The civil law form of relations imposes a number of obligations on the employer (customer), who can be held liable for violation of agreements if the tax authorities consider such an employment contract.

In order to reduce the risk of problems with law enforcement agencies when doing business, it is better to first consult with experienced lawyers on registration and choosing a form of taxation. This will allow you to receive income legally, without violating the Federal Law of the Russian Federation.

Consequences of illegal business

Depending on the amount of illegal income for the year, as well as the type of illegal business, a businessman is subject to criminal or administrative punishment under a number of articles of the law. What threatens for non-payment of taxes, lack of registration and unofficial employment of an employee? Answers to questions are presented for 2018, without reference to a specific situation. You can get legal advice on your case on the Lawyer website by contacting the feedback form or by phone.

Administrative liability for illegal business

The fact of illegal business is established by the tax inspectorate, the antimonopoly committee, the police / prosecutor's office and the consumer market supervisory authorities. A protocol on the fact of violation of the law can be drawn up as a result of a number of verification measures:

• test purchase;
• inspection of the premises;
• complaint from a customer/partner, etc.

Cases are considered by the justice of the peace within 3 months from the moment of drawing up the protocol, if the amount of damage does not reach a large amount.

If there are errors, contradictions and violations in the protocol, then the case is referred to the court only after the truth is established and changes are made to the document. In case of expiration of the statute of limitations, the prosecution of the case may be terminated if you choose the right defense counsel and seek the support of an experienced lawyer in a timely manner.

The consequences of entrepreneurship that occur when carrying out activities without a license and registration are regulated by the administrative and tax code of the Russian Federation:

• Art. 116 of the Tax Code of the Russian Federation - a fine of up to 40 thousand rubles. and in the amount of 10% of income, provided for violations of the terms of registration and profit without registration;
• for citizens carrying out activities without the status of an individual entrepreneur, penalties are determined according to part 1. Art. 14.1 of the Code of Administrative Offenses of the Russian Federation - from 500 to 2 thousand rubles;
• also under Art. 14.1 of the Code of Administrative Offenses of the Russian Federation provides for punishment for entrepreneurship without a license, violation of the terms and documentation of these permits for legal entities and officials, which affects the amount of the fine and additional restrictions on doing business.

Other penalties and sanctions for gross and minor violations can be found in the Federal Law of the Russian Federation of 2018, as well as by contacting lawyers for advice. Annual changes in legislation require careful consideration of each issue, since what was allowed last year can now turn into serious problems for the entrepreneur.

Criminal punishment for entrepreneurship (large size) under Art. 171 of the Criminal Code of the Russian Federation

In the case when the damage to the state / citizens / legal entities is large (more than 2.5 million rubles), illegal entrepreneurship is considered in the courts as a criminal offense under Art. 171 of the Criminal Code of the Russian Federation. Under this article, punishment may be in the form of a fine or imprisonment, depending on the circumstances:

• entrepreneurship without registration and license - a fine of up to 3 thousand rubles, arrest for up to 6 months, compulsory work up to 480 hours;
• if the damage is especially large (from 9 million rubles), and entrepreneurial activity was carried out by a group of persons, then the punishment may be in the form of penalties up to 500 thousand rubles, forced labor up to 5 years, imprisonment up to 5 years, together with payment a fine of up to 80 thousand rubles. (at the discretion of the court).

When investigating illegal business activities, additional violations may appear - consumer fraud, use of a trademark and copyright, trade in confiscated products, and so on. This will lead to new fines and litigation, which can be avoided by contacting qualified lawyers and legalizing your business in a timely manner.

Summary

Responsibility for illegal entrepreneurship comes under the Criminal Code of the Russian Federation with an amount of damage of more than 2.5 million rubles. In other cases, preventive measures are selected according to the AC RF and the RF Tax Code.

What business is illegal, who can report infringement, and who is responsible:

• common violation of the law - lack of a license and violations of the terms and type of licensed products in accordance with the regulations in force on the day of doing business;
• also often in judicial practice there is untimely registration of entrepreneurial activity, as well as its continuation after the closure of the organization, individual entrepreneur;
• the defendant in the case may be an individual, legal entity, head of the enterprise;
• the maximum preventive measure for the amount of damage of more than 9 million rubles. - Imprisonment for up to 5 years.

Lack of a tax return, delay in registration, knowingly false information about income and other violations are regulated by the tax code of the Russian Federation. Such acts are considered as an independent violation or in conjunction with administrative and criminal offenses related to doing business.

Comments

I downloaded Yandex on the Internet and decided to earn extra money, and on the very first flight I was stopped and charged with illegal business and took the car to a fine parking lot, since I did not know that a license was needed for such work.

What threatens me?

And another employee of the UBEP told me that for the period while the car will be parked until the court, I will not have to pay for these days, since it is material evidence

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I was presented with an administrative violation of the law and was told that the justice of the peace would decide my further fate

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In Russia, as in most other countries, there is liability for illegal business activities, and the punishment of an individual depends on the severity of the violation. After all, a citizen who actually receives income from his occupation exercises his rights, but avoids many types of duties, including the payment of taxes.

What is entrepreneurial activity

In Russian legislation, entrepreneurship is considered to be an activity that a citizen conducts with the aim of obtaining regular, permanent profits. It includes the provision of various services, the manufacture and sale of goods, the rental of premises. According to article 14 of the Civil Code, an individual acquires the right to such an occupation only if he is registered as an individual entrepreneur. Otherwise, he faces a fine for illegal business activities.

Thus, individual facts of the sale of goods or the provision of services are not considered a violation. But provided that the volume of services, the amount of goods sold, and other circumstances do not indicate the systematic nature of transactions. Evidence to the contrary are: testimonies of witnesses, payment documents (bank statements, receipts for receiving money), acts of accepted work. Also taken into account:

• facts of placing goods for sale in public places,
• advertising of any kind,
• bulk purchasing facts,
• conclusion of a lease agreement for premises for a specific purpose.

At the same time, in itself, the presence or absence of profit does not play a role in determining the fact of violation of the law. It is important that the actions were performed repeatedly within a certain period.

Since the property of an individual entrepreneur is not actually delimited, there are controversial issues regarding the rental of housing. In order for such a fact to be regarded as an economic source of income, it is necessary to prove that:

• it was acquired or created specifically for profit;
• hiring transactions were recorded as business transactions;
• there are long-term relationships with consumers of services;
• there is a purposeful interconnection of all transactions.

In 2004, the Resolution of the Supreme Court determined that the renting out of one's own residential premises with the receipt of income by private individuals does not entail liability for illegal entrepreneurship. Therefore, it is not necessary in this case.

Liability for illegal business activities

There are two types of liability for offenses in the economic sphere - administrative and criminal. In order to hold a citizen accountable, there must be (and proved in court) facts that testify to their permanent nature (systematic). Responsibility for illegal entrepreneurial activity depends on the amount of damage caused to the state or affected citizens and organizations.

Types of administrative penalties

Administratively, citizens are involved under Article 14.1 of the Code of Administrative Offenses. Paragraph one states that the fine for illegal entrepreneurship (without an IP certificate) ranges from 500 to 2,000 rubles. In case of simultaneous violation of several norms, the penalties are summarized, for example:

• sale (storage, transportation) of goods without marking - this is a plus of article 15.12 (a fine of up to 4 thousand rubles with confiscation);
• the provision of catering services in violation of sanitary standards - adds Art. 14.4 (up to 2 thousand, again - up to 5 thousand rubles);
• with violation of the rules for the sale of certain types of goods, for example, cigarettes - even Art. 14.5 (plus 1 thousand rubles);
• sale of goods restricted or prohibited for sale (medicines, weapons) - Article 14.2 (up to 2 thousand and confiscation).

Note that the Code of Administrative Offenses provides for a significantly smaller amount of fines for citizens than for registered individual entrepreneurs.

State registration is the main, but not the only condition for doing legal business. If a citizen carries out work that is subject to licensing, or is associated with obtaining a special permit (SRO - during construction, for example), he may additionally receive a fine for illegal business activities without a license. This is established by paragraphs 2,3, and 4 of Article 14.1 of the Code of Administrative Offenses.

These types of services include, in particular:

• educational and medical;
• transportation of citizens by passenger transport;
• acceptance and processing of scrap metal;
• development of computer programs;
• providing communication.

For such illegal entrepreneurship, administrative responsibility comes on a more serious scale.

• For work without a license (special permit), if they are required by law - a fine of up to 2.5 thousand rubles with possible confiscation of equipment, raw materials, manufactured products (at the discretion of the court).
• For violation of the terms of a licensed permit - up to 2 thousand rubles. (cases of gross violations against individuals are not considered).

Judicial practice shows that a significant part of cases for illegal business activities under the Code of Administrative Offenses of the Russian Federation ends with termination due to the expiration of the statute of limitations. In half of the cases, confiscation turns out to be impossible, because the tools of labor do not belong to the violator of the law, but to another person.

Criminal liability for illegal activities

It occurs when independent risky actions of a citizen have caused serious negative consequences. In this case, illegal entrepreneurial activity entails the punishment of an individual under Article 171 of the Criminal Code.

1. A fine of up to 300 thousand rubles, or may be imposed in the amount of income received over the past 2 years. Either by a court decision - compulsory work (up to 2) or arrest - up to 6 months.

These types of punishments are imposed for work without state registration (as well as without a license), if damage is caused, or the income generated reaches a large amount. In the latest edition (2016), it includes the amount of 2.2 million rubles.

1. The amount of penalties increases to 500 thousand rubles, or up to 3 annual incomes, forced labor or imprisonment is possible - up to 5 years. Provided: the actions listed in the first paragraph were accompanied by aggravating circumstances:

• several persons (group) participated in the extraction of income;
• the profit received reached a particularly large size - 9 million rubles.

Since 2010, penalties for illegal entrepreneurial activity, as well as for economic crimes in general, have been applied less frequently. This is due to the fact that cases have become more frequent when market participants have tried to resolve purely competitive relations in this way. As a result of mitigation of the Criminal Code:

• abolished punishment for work in violation of licensing rules (remained only for the complete lack of registration or permission);
• significantly increased the amount of damage, allowing it to be classified as large (it was 250 thousand, and 1 million - especially large);
• limited the possibility of detention - now this is possible only as an exception, if the identity of the suspect is not established or he has a permanent place of residence on the territory of Russia, or is hiding from the investigation.

The specificity of criminal prosecution lies in the fact that liability is linked to the amount of damage caused. Therefore, if it is not proven, then the offense is considered as an administrative violation. If a citizen committed a crime for the first time, and fully compensated for the harm caused, as well as made additional double compensation to the budget, exemption from liability is allowed (Article 76.1 of the Criminal Code).

Real Russian life: theory and practice

Most often, they are brought to justice for illegal business for “hands-on” trading. Simply because such an occupation is manifested clearly, and usually there are witnesses. As for, for example, programmers, tutors, cooks - this is practically impossible. It is difficult to prove that a person systematically performed work for several customers over a certain period.

The most common type of illegal services is construction. Considering that the fine for illegal entrepreneurship is 2,000 rubles, which is incommensurable with the payment for contract work, there is no point in such a punishment. It is difficult to talk about confiscation when a built residential building acts as a manufactured product. Even for work without a permit, it is impossible to attract, since the supervisory authorities in the field of work safety do not have the right to draw up administrative protocols in relation to an individual. They can only punish a registered individual entrepreneur or organization.

Due to the uncertainty of the concept of illegal entrepreneurial activity, the punishment of an individual is rather difficult, and therefore judicial practice in such cases practically does not add up. The question is regularly raised about the exclusion of many types of services from the category of entrepreneurial: educational, contracting, legal.

So, from January 1, 2017, citizens providing the services of nannies, nurses, tutors were classified as self-employed. Provided that they voluntarily declare their occupation, they are until 2019. It is unlikely that the new law will stimulate citizens to come out of the shadows. Indeed, in 2 years you will have to buy a patent, or pay personal income tax on the income received, and the employer - insurance premiums. In this case, all of them will be known to the tax authorities.

Penalty for illegal business: 7 features of entrepreneurial activity + 5 types of illegal business + 3 types of liability that a businessman who violates the law may incur.

With the Soviet Union gone into oblivion, the ban on private business activity also disappeared.

Today, anyone can become a businessman and earn money.

The only condition is to register officially and pay taxes to the state treasury.

Anyone who does not comply with this condition will receive a fine for illegal business.

Don't risk running an illegal business in the hope that you can get through. Do everything according to the rules and earn money as a law-abiding citizen.

Illegal entrepreneurship: the fine that is provided for it and the definition of the concept

In fact, each of the illegal entrepreneurs knows perfectly well that he violates the laws of the Russian Federation by doing business without official registration. But as soon as it comes to the responsibility that you have to bear for your business, it immediately begins: “Yes, I didn’t think that this qualifies as entrepreneurship”, “Yes, I didn’t earn so much”, “For what a fine”, etc. .d.

That is why it is better to study in a timely manner what signs illegal entrepreneurial activity has and what types it is.

1) What should be understood by the term "Illegal business"?

Some citizens of the Russian Federation do not fully understand whether they are engaged in entrepreneurship or their one-time action to make money can do without registration.

There are several features:

1. the frequency of the same transaction;
2. advertising your services;
3. bulk purchases of goods that you then sell or ingredients for the manufacture of products for sale;
4. customer base (not one or two people can confirm that they are your clients);
5. keeping records of their transactions;
6. profit that you receive regularly;
7. contracts (oral or written) that you enter into with suppliers, customers, distributors, etc.

As you can see, the characteristic features of entrepreneurship are many activities that people are in no hurry to register. For example:

• baking and selling cakes at home;
• manicure and other services in the beauty industry performed for girlfriends;
• repair of cars and equipment, albeit infrequently, but for money;
• selling crafts that you made yourself;
• the sale of a large number of things, even if they previously belonged to you, through online auctions, etc.

Let's now look at 2 situations that are not business activities, so penalties are not due for them.

Situation #1.

You inherited an apartment from your grandmother. You are happy with the apartment, but the old furniture that clutters up the living space is not very good.

You decide to arrange a sale in the courtyard of the house in order to sell things you don’t need for mere pennies (whoever offers how much). What is not for sale, you think to throw in the trash.

There is no need to register or obtain special permits for this one-time promotion.

Situation #2.

Do you have an empty apartment that you want to rent out. not necessary.

The conditions for conducting such activities are an official contract with tenants of housing, a timely filing of a declaration and the payment of taxes for the profits received.

Important ! As you can see, even without expertise it is clear what you are doing business or not. It is time to stop conducting illegal activities and become a legal businessman, otherwise fines cannot be avoided.

2) What is illegal business and what are the penalties for it?

In fact, there are quite a few types of businesses that qualify as illegal businesses.

Depending on the severity of the offense committed, the regulations of the Russian Federation provide for different types of punishment for attempts to illegally earn money.

Let's dwell on the most common types of illegal business, for which a fine or other punishment is provided:

Important ! Whatever you decide to do, make sure that your activity is completely legal and that you have issued it according to the official procedure. This will allow you to avoid unnecessary problems during state inspections.

Fines for illegal business and other penalties

There are three types of liability that is provided for illegal business:

• administrative;
• tax;
• criminal.

As you can see, we are talking not only about fines, but also about other types of punishment.

1. Administrative liability and fines for illegal business.

The Code of Administrative Offenses of the Russian Federation (its article 14.1.1.) provides for different amounts of fines for a particular type of illegal activity.

The standard fines that will have to be paid to those who are engaged in entrepreneurship without official registration are 500 - 2,000 rubles.

But there are exceptions to this rule: the amounts may still increase depending on the conditions in which the violations were committed and the personality of the violator.

One protocol is not enough to impose a fine on you. The case must be considered by a justice of the peace, and it depends on his opinion what kind of punishment you will incur.

He has 2 months to make a decision.

Liability can be avoided if the protocol is drawn up illiterately and contains factual errors. But such happiness for illegal entrepreneurs does not always fall out.

Important ! Not only the police, but also other state bodies can draw up a protocol on illegal entrepreneurship: the antimonopoly committee, the tax office, the prosecutor's office, etc.

2. What fine for illegal entrepreneurship will have to be paid according to the Tax Code of the Russian Federation?

Articles 116 and 117 of the Tax Code of the Russian Federation are responsible for illegal entrepreneurship.

The tax authorities are primarily interested in the taxes they did not receive, which were supposed to replenish the state treasury.

There are three types of misconduct by an entrepreneur, according to the Tax Inspectorate, for which a fine or other type of liability is provided.

Keep in mind that in addition to the fine, you will most likely have to return to the treasury taxes that you could pay if you were officially registered.

In general, the amount is serious, so it's not worth the risk.

Important ! Such violations are discovered during scheduled or unscheduled inspections. A complaint filed by your competitor or a dissatisfied client is also considered, so you need to take care not only of compliance with the registration conditions, but also of the impeccability of doing business in all respects.

3. Criminal liability for illegal business.

If only your wallet suffers from administrative and tax liability for illegal business activities, then you can pay for a criminal offense with your freedom.

The amount of the fine depends on how much damage you have caused to the state with your entrepreneurship:

• large size - 250,000 and more rubles;
• especially large size starts from 1 million rubles.

Good news for illegal businessmen: it is very difficult for police officers and investigators to prove the very fact of causing damage on a large or especially large scale due to the nature of the procedure.

Bad news for illegal businessmen: Typically, such crimes are classified as money laundering (Article 174 of the Criminal Code of the Russian Federation) and are punished no less severely than illegal business. And the fines there amount to hundreds of thousands of rubles, and you can easily lose your freedom for two years.

Important ! If your illegal business has fallen under criminal liability, consider that the jokes are over for you. This will not only affect you, but your loved ones as well. Just imagine what a stain on the reputation of your family you will put with your actions. Why risk so much if you can register, get all the permissions, pay taxes on time and work quietly officially.

Entrepreneurial activity without registration.

What is the responsibility for the lack of IP or license?
Detailed consultation.

Citizens of the Russian Federation are asked to be vigilant and signal illegal business

In Russia, alas, the consciousness of civil society is not as high as, for example, in Europe, where a violation of the law by one citizen will necessarily be met with a complaint to the law enforcement agencies of the second. And those who did business dishonestly will definitely receive a fine for illegal business.

In our country, such behavior is considered squealing and is condemned in every possible way.

The government, on the other hand, has a different opinion and asks the population to show civic consciousness, signaling cases of illegal business known to them.

Just think about the harm to the country's economy caused by hundreds of thousands of small and medium-sized businessmen who work in the shadows. What kind of security can we talk about if cosmetic services are provided in the apartment, and pastries are made in a dirty summer kitchen?

All that is needed for the manifestation of consciousness is to make a complaint in any form. The main thing is to indicate who and where is engaged in illegal business.

You can address your message to any government agency, for example, the police, tax, prosecutor's office, etc.

If the facts you indicated are confirmed, then the would-be businessman will receive a fine for illegal business, and we will take one more step towards building a power in which laws are respected.

In countries with market economies, which include Russia, the majority of citizens are engaged in business that brings them income. Most often, this is wage labor. But there are still millions of able-bodied Russians who run their own businesses, earning income on their own. Many of them are at risk of becoming liable for illegal business activities because they do not pay taxes.

The state is trying to bring these citizens out of the shadows in many ways. This is a simple business registration, and low tax rates for individuals, and the provision of subsidies from the budget for the development of their business. But in addition to stimulating methods, sanctions are applied to illegal business. One of them is a fine for illegal business.

What is considered entrepreneurial activity

To understand who can be fined for illegal entrepreneurship, you must first understand what kind of activity is recognized as entrepreneurial.

This is stated in article 2 of the Civil Code. Entrepreneurship is an activity aimed at systematically making a profit. It would seem that hired labor also fits this definition. But entrepreneurial activity has two more criteria - independence and risky nature.

The hired employee does not work independently, but under the control of the employer, performing the duties assigned to him. In addition, there are practically no risks in working under an employment contract - whatever the financial situation of the employer, he is obliged to pay the employee a salary.

That is, the activity of an individual is recognized as entrepreneurial if he receives income in the form of payment for the services or goods offered by him outside of labor relations. An exception is the sale of products grown in personal subsidiary farms, if the area of ​​the land plot does not exceed 0.5 hectares.

How to legalize your own income

In order to legalize independently received income, it is necessary to inform the tax office of its size and pay tax at the established rate. How to do it? There are three options:

1. At the end of the year, submit a declaration in the form of 3-NDFL and transfer 13% of the income received to the budget.
2. Register a business in the format or LLC and pay taxes under the chosen taxation system. Often this turns out to be more profitable than paying 13% personal income tax.
3. Get self-employed. We will tell you further about what this category is, because there is a lot of information on this issue.

But independent receipt of income without a report to the tax office is an illegal entrepreneurial activity. And if it is revealed, an individual can be brought to administrative, tax and criminal liability.

Liability for illegal business

So, what exactly threatens an individual for doing business illegally? And in the toughest version - why can an illegal entrepreneur be imprisoned?

First, about relatively mild sanctions - administrative ones. A fine for illegal business is a measure provided for in Article 14.1 of the Code of Administrative Offenses. Now this is a rather modest amount: from 500 to 2000 rubles. And only if the activity that an unregistered businessman is engaged in is licensed, the fine for illegal entrepreneurship is slightly higher: from 2,000 to 2,500 rubles.

Of course, such fines cannot in any way motivate citizens to legalize and officially open a business. After all, entrepreneurs registered with the IFTS not only pay taxes and contributions, but are required to comply with many other norms. For example, timely filing reports, using a cash register, complying with consumer protection laws, etc. And for violating these norms, they are also fined, moreover, by tens and even hundreds of thousands of rubles.

Tax liability occurs if it is proved that illegal entrepreneurial activity has generated income from which taxes have not been paid. And this is not so easy to do.

• First, you need to get documentary evidence of illegal income.
• Secondly, it is necessary to involve his buyer or client in the proceedings with an illegal entrepreneur.
• Thirdly, to prove that making a profit occurs on an ongoing basis.

But if all the facts are proven, then according to Article 122 of the Tax Code of the Russian Federation, 20% is collected from the unpaid tax. If it is revealed that non-payment of tax is intentional, then the fine will be 40%. Plus, you have to pay the tax itself and penalties for its delay.

Another measure of tax liability is for violation of the rules for tax registration. If entrepreneurial activity without registration with the IFTS is carried out for more than 30 days, then a fine under article 116 of the Tax Code of the Russian Federation in the amount of 10,000 rubles is possible.

And finally, about criminal punishment for illegal business under Article 171 of the Criminal Code of the Russian Federation. This is the most serious measure, but the grounds for bringing to criminal responsibility must also be weighty. The income received from illegal entrepreneurial activity must be more than 2.25 million rubles. If the amounts are less, then it can only be brought to administrative or tax liability.

An illegal businessman who received a large income (from 2.25 to 9 million rubles) and had no accomplices can be subject to the following criminal prosecution measures:

• a fine of up to 300 thousand rubles or in the amount of the convicted person's income for a period of up to two years;
• compulsory work for up to 480 hours;
• arrest for up to 6 months.

The criminal punishment for receiving income by an organized group or on an especially large scale (from 9 million rubles) is much stricter:

• a fine of up to 500 thousand rubles or in the amount of the convicted person's income for a period of up to three years;
• forced labor for up to five years;
• imprisonment for up to five years.

As you can see, it is relatively safe to run only a small illegal business, however, it becomes more and more difficult to do this every year. From unregistered entrepreneurs, first of all, buyers and clients themselves refuse.

The sale of goods or the provision of services in this case is not regulated by consumer protection law. And this means that it is impossible to receive a payment document or replace a defective product. Illegals simply cannot compete with official entrepreneurs.

In addition, there are difficulties with paying for goods and services. If money is regularly received on a personal card or account from different persons, this may be of interest to a bank that is obliged to comply with the legislation on legalization of income. Then you will have to explain to financial intelligence where and for what the constant payments come from.

What to do for those who want to run a legal business

Briefly, we have already answered this question - it is necessary to report to the tax office about the income received and pay taxes on them.

If you receive income irregularly, for example, it is an author's fee for occasionally published articles, or income from the seasonal rental of an apartment, then you can simply submit a 3-NDFL declaration at the end of the year. You do not need to prove the amount of income received, just indicate the amount in the declaration and calculate the tax at a rate of 13% (provided that you are a tax resident of the Russian Federation).

For those who conduct a regular business, and even with the involvement of employees, it is necessary to register with the Federal Tax Service. The easiest way is to register an individual entrepreneur, but if you have partners, it is better to open an LLC. After that, you will become a registered business entity and will be able to work on an equal footing with other commercial structures.

But from 2019, another form of entrepreneurial activity will be legalized - the so-called self-employed. These are individuals who independently provide services and sell goods without involving employees. Moreover, the allowable revenue for them will be limited - no more than 200 thousand rubles a month or 2.4 million rubles a year.

Income earned will be subject to income tax. The VAT rate depends on the person to whom the goods are sold or services are provided. If these are ordinary individuals, i.e. population, the rate will be only 4% of income. If the consumers of goods and services are organizations or individual entrepreneurs, then the rate is higher - 6% of revenue. But it's still less than 13% personal income tax.

Most importantly, it will be easier to get the status of self-employed than to open an individual entrepreneur or LLC. Registration will take place through the My Tax mobile application, which can be installed on a computer or phone.

A cash register is not needed, a check for the buyer or client will be generated by the application itself in electronic form. It is not necessary to calculate the tax on your own, the IFTS will send notifications of tax payment, which is generated on the basis of payment data entered in the application. You must pay professional income tax every month if the self-employed received income during this period. If there is no income, you will not have to pay anything.

So far, a pilot project on the self-employed will be launched only in Moscow, Moscow Region, Tatarstan and the Kaluga Region for a period of six months to six months. If the project proves its feasibility, it will operate throughout the Russian Federation. And it is possible that after that the very concept of illegal business will become a thing of the past.

The advantages of working for yourself are obvious: there is no obedience to the schedule adopted at the enterprise, you can conduct business on your own and determine its direction, scope of work and deadlines for its implementation. Therefore, “freelance” has become widespread, when a person works without formalizing an employment relationship, trades on the market or via the Internet, provides services or performs work for customers. But is everything so simple? What risks do they expose themselves to if they do not register their business as an individual entrepreneur?

What is entrepreneurial activity

From the point of view of the law, business is understood as an independent activity that is carried out at one's own risk and has the goal of regularly making a profit through trade, the provision of services, the performance of work, etc.

The legislation does not contain a ban on the conclusion of certain types of civil law contracts, including the provision of services with individuals (citizens - not individual entrepreneurs). This could be considered absurd. The fact that a person carries out transactions for compensation is not enough to recognize him as an entrepreneur, if this is not systematic and does not bring a constant income that exceeds the costs in connection with this activity, i.e. profit. This position is also supported by financial state bodies.

However, it is necessary to clearly understand where the line passes, at the intersection of which a freelancer begins to engage in illegal business.

Signs indicating the conduct of entrepreneurial activity

Based on the interpretation of the law by government authorities exercising control over business units, the following characteristics can be distinguished that an activity must meet in order to qualify as entrepreneurial:

• repeated production / purchase of goods or performance of work on the manufacture of products for the purpose of further sale, use for profit;
• keeping records of transactions and operations related to them;
• conclusion of interconnected agreements and other types of transactions within a limited period;
• numerous and/or established relationships with customers/consumers, suppliers and other similar business participants.

Thus, if citizens provide services, trade in the market or in a store, rent out residential or non-residential premises (for example, a room, garage or other building) or perform other types of actions in the presence of the above signs, then their activity will be considered entrepreneurial activity. In this case, individuals involved in it are subject to mandatory registration as individual entrepreneurs in the manner prescribed by law. Otherwise, the person becomes an illegal entrepreneur.

Failure to comply with the requirements for registration of individual entrepreneurs by persons actually engaged in entrepreneurial activities carries the risk of bringing to administrative and criminal liability, the onset of other negative consequences.

But if a person who is the founder of an organization (for example, LLC) negotiates with other entrepreneurs on the issues of transactions, this does not mean that he himself is forced to engage in entrepreneurial activities. Such an entity contributes to the efficiency of the business of the LLC founded by it, although the purpose of the actions is to make a profit.

Registration of the status of an individual entrepreneur, subsequent submission of reports, etc. - a tricky business. Therefore, citizens are thinking about the question of what they have the right to do without registering an individual entrepreneur or creating an LLC. The legislation does not prohibit certain types of onerous transactions between individuals, it follows that they can be made in different areas: contracts for the provision of services, for work, sales, etc. You can sell both goods of your own production and other manufacturers.

Restrictions on the conclusion of the following contracts are subject to accounting: retail purchase and sale, supply (in which the seller is an entrepreneur), the implementation of types of business that are impossible to engage in without a license. And it is required to comply with the main obligation - to pay taxes. Otherwise, in addition to mandatory payments, fines will arise. In the future, as soon as signs of entrepreneurship appear, there will be a risk of being held liable for not taking actions to register an individual entrepreneur or creating an organization (for example, an LLC).

Bringing to administrative responsibility for illegal business

A fine is the main type of punishment for such offenses. In order to be held liable for the specified act, it is required to prove the presence of signs of entrepreneurial activity in the actions. Some lawyers point to the need to confirm its regularity (systematicity), and profit in the absence of registration. However, case law suggests that this is not the case.

It is enough to prove that the activity is carried out for the purpose of making a profit, which may not be due to various reasons. So, if you trade in products that are not in demand, you can get into a situation where the result is only losses. But this does not mean that such activities are not recognized as entrepreneurship. The situation will be similar in which, as part of the systematic provision of services, there will be improper performance, the amount of compensation for which will exceed the income received for the service.

They prove the presence in the actions of a citizen of elements of entrepreneurship based on the testimony of customers, buyers, suppliers. Confirming certificates are certificates containing information on transactions on the person's accounts, other documents, facts of the provision of services (acts, receipts, etc.).

In accordance with administrative law, an offense is punishable by a fine of up to 2,000 rubles.

Violation of tax laws

In this context, it is necessary to take into account two aspects that may arise in the implementation of entrepreneurial activities. Firstly, we are talking about a violation of the procedure for legalizing a business, which includes a statement to the tax authorities about oneself as an entrepreneur. Secondly, if they talk about the evasion of certain types of taxes. Such violations are also possible on the part of organizations, including LLCs, and are not something exceptional.

Simultaneously with registration, the entrepreneur becomes tax registered at the place of residence. This rule applies to both individual entrepreneurs and LLCs or other legal entities.

The law establishes liability for carrying out entrepreneurial activities without registration.

And here the entrepreneur faces a significant fine of at least 40 thousand rubles.

Each citizen who does not have the status of an individual entrepreneur (who has not been registered as such), but has taxable income, must pay personal income tax in the amount of 13%. Traditionally, employers or employers (LLCs or other business entities) do this for him as tax agents. For failure to fulfill these obligations, they are liable in the form of fines. But this does not happen in all cases.

Then he pays himself. In addition, when receiving certain types of income, including income from civil law transactions with individuals, a citizen is required to file a declaration and report, otherwise sanctions in the form of a fine are also imposed on him.

It is logical that a person who has not registered as an individual entrepreneur or who does not act in the interests of an LLC, but conducts business in violation of the law, is unlikely to pay taxes and submit reports in the prescribed manner, as this will allow the fiscal authorities to identify the fact of illegal entrepreneurship. Therefore, these two aspects of tax violations go side by side.

Failure to submit a tax return entails the imposition of an administrative penalty - a fine of at least 1 thousand rubles, non-payment of personal income tax threatens with a fine of 20%, and if the violation is intentional - 40% of the amount of unpaid tax.

In the case when the entrepreneurial activity of a citizen (without registering an individual entrepreneur) caused major damage to other persons or brought him income on a large scale, then such a person becomes a criminal, since these actions fall under the offense of “illegal entrepreneurship”.

The consequences of conviction for such an offense are unfavorable:

• you can impose a fine of up to 300 thousand rubles or arrest for 6 months, or compulsory work up to 480 hours, and if the business was conducted as part of a group, then the sanctions are tougher;
• property obtained as a result of illegal entrepreneurship is first included in the evidence base, and then transferred to the state.

To bring to criminal responsibility within the framework of this crime, it is enough to receive a funded income in the amount of 1.5 million rubles, which is not difficult. The fine is higher than the administrative one. Thus, the legislator encourages citizens to legalize business by establishing strict liability standards.

Other negative consequences

The legislation establishes that a person who provides services, trades or engages in other types of business without proper registration (registration), in the event of disputes arising from transactions, is not entitled to refer to the status of an individual entrepreneur and demand the application of the corresponding rules that compare favorably within the framework of business regulation .
The risks increase if a person does not pay taxes, as ill-wishers can report his actions to law enforcement and other authorities. In addition, an illegal entrepreneur, fearing disclosure of details of activities without registering an individual entrepreneur, huge fines and other adverse consequences, will not apply for judicial protection of his rights as a business entity, including to recover the cost of unpaid services or goods, will not file other types of lawsuits .

These consequences can be avoided if you conduct business legally by registering as an entrepreneur. But if the increased responsibility of individual entrepreneurs is frightening, then citizens have the right to create an LLC, make contributions there (minimum) and work in the direction they like: provide services to consumers, trade in goods, etc., avoiding fines and other negative consequences. At the same time, the risks of additional liability inherent in IP are removed. And it is possible to minimize taxation even with this organizational and legal form. Like an individual entrepreneur, an LLC has the right to choose a special taxation system that requires low costs.