Consequences of illegal entrepreneurial activity. What are the penalties for illegal business? Responsibility for carrying out illegal business activities

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. According to the 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 one's 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 are carried out aimed at obtaining a permanent income, 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 actions 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 unregistered as legal entities formations - 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 accountable 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 a 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. With regard to Article 171.3, here large damage is illegally produced or sold alcohol ( alcoholic drinks) in the amount of more than 100 thousand rubles, and an especially large amount - for 1 million rubles.

Summing up

Illegal entrepreneurial activity is the provision of services, work, sale of goods, transfer of property for use and other actions aimed at repeatedly generating income. To acquire the right to conduct such activities, it is necessary to undergo state registration, and in some cases also 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.

Pentrepreneurial activity- risky economic activity aimed at the systematic receipt of profit from the production and sale of goods, the provision of services, the performance of work. For this purpose, property, intangible assets, labor of both the entrepreneur himself and those attracted from outside are used.

Illegal business- this is a commercial practice that is permanent and is carried out contrary to the norms of the law.

The implementation of commercial illegal activities without registration with the tax authorities is punishable by law. Therefore, a citizen who regularly provides services or sells goods simply needs to register his business. What punishment threatens an entrepreneur for illegal activities, we will describe in detail in our article.

Liability for illegal business activities

Any illegal activity is punishable, and the nature of responsibility for the deed differs in the category of "harmfulness" and harm (damage). Such a negative effect in the form of damage is caused to people, other legal entities, private entrepreneurs, and the state. Consider the main types of responsibility.

Criminal (UK)

The toughest and most radical type of responsibility, this is justified by the fact that it provides for serious types of punishment. This form of liability is enshrined in the Criminal Code. For example, he is responsible for illegal commercial business activity. Citizens should be aware that criminal liability can only occur for guilty individuals, including:

• Entrepreneurs.
• Managers, owners of legal entities.
• Actual managers or owners of an unregistered enterprise, organization.

Administrative (CAO)

Provides only for penalties that are not global (not in large volumes) in nature, in particular - from 500 to 2000 rubles (the smallest type of sanctions). Legislators have provided for this type of liability in the Code of Administrative Offenses.

The amount of penalties directly depends on the presence of repetition, the attitude towards the offense of the entrepreneur himself, the subject of the offense, and, no doubt, the type of offense. The main forms of such offenses are:

• Violation of licensing rules. There are two types of offense according to severity: violation of the terms of the license, gross violation of the terms of the license.

  Accordingly, depending on this, sanctions will also vary. So, for the first type of violation, a fine is provided from 1500 to 40000 rubles, and for the second - from 4000 to 50000 rubles, including the possibility of suspension of activities up to 90 days.

• No license. Punishable by money from 2000 to 50000 rubles with the confiscation of unlicensed products, as well as raw materials.
• Work without registration – from 500 to 2000 rubles. As mentioned above, the mildest form of punishment.

tax

The main purpose of registration and licensing of enterprises is to replenish the budget. Such replenishment is carried out at the expense of taxes and fees. Therefore, by right, tax is the main type of responsibility.

Tax liability is material and compensatory in nature. That is, in addition to taxes not received by the state, you will also have to pay a fine for tax evasion. Tax liability for illegal business is provided for by Art. 116 of the Tax Code.

Varieties of illegal entrepreneurial activity

There are several types of such illegal activity:

• Prohibited by law. This type usually includes the production, sale, transfer, storage of narcotic and psychotropic substances, the creation, sale of weapons.
• A business that is not registered in accordance with the procedure established by the state. In order to enter into relations with counterparties for the purpose of buying, selling, marketing, exchanging any products, providing services on a commercial basis, you must have a certain status - a legal entity or an individual entrepreneur. But, as you know, in order to obtain such a status, it is necessary to register, that is, to give a legal form to your business. If, for example, you systematically provide paid hairdressing services at home and do not have official registration as an enterprise or entrepreneur, then know that your activity has nothing to do with the law, and appropriate liability measures are provided for it.
• Lack of a license when performing licensed activities and violation of licensing rules. A license is a legal permission to engage in a specific business. Not every type of activity implies obtaining such a permit, but there is a certain list of such types. Among the most popular are activities related to the production of alcohol, pharmaceuticals, medical and educational practices.
• The activities of the company in violation of the statutory provisions (in violation of the rules of registration). The charter is the main document of the enterprise, the basis of its functioning. The charter, as the basis for the existence of the enterprise, indicates the leading and additional activities. If the organization is engaged in any other types of activities not provided for by the Charter, this can only be regarded as illegal activity.

Which state bodies can reveal the fact of illegal entrepreneurial activity

In order to control the functioning of entrepreneurs and legal entities in the state, competence is distributed among specialized bodies designed to protect the law and promote a direct flow of profit to the budget.

These bodies are engaged in monitoring the activity of entrepreneurial activity, as a result of which they sometimes reveal violations of the law in the field of entrepreneurship.

These bodies are:

1. Tax office. This is the main body that monitors the replenishment of budget funds in the form of taxes. In order to detect illegal activities, tax inspectorates conduct inspections, pay visits, and carry out raids. The IFTS has the right to bring tax liability for violation of legislation in the field of entrepreneurship.
2. Antimonopoly committee. A specific body created to ensure transparency and legality, freedom of competition. Their activities are aimed at establishing the integrity of relations between business entities and the cleanliness of doing business. The Antimonopoly Service has the right to bring those responsible for violation of the law to liability, which is administrative in nature.
3. consumer market regulators. The prevailing body is Rospotrebnadzor, whose main function is to protect the rights of consumers. They have powers in the field of bringing to administrative responsibility. The main offenses identified by this body in the field of entrepreneurial activity include violations in the field of trade. Also, bodies of this type include services for veterinary and sanitary supervision, for supervision in health care. These bodies are the link between offenders and law enforcement agencies.
4. Police. As a law enforcement agency, it is engaged in identifying any offenses, accepting applications from citizens, initiating cases on the fact of illegal entrepreneurial activity.
5. Prosecutor's office. It also appears to be a law enforcement agency. Identifies offenses (crimes), has the right to prosecute. Supervises the police, is a representative of the state and the applicant in court when considering cases related to the illegal activity of legal entities and private entrepreneurs.

Types of business activities that do not require licensing

There are some types of business activities for which registration is not a mandatory requirement. These types of business activities are personal in nature, mainly the provision of some kind of service.

It is worth paying attention to the following types:

1. Tutoring, homeschooling. Any citizen can engage in tutoring without acquiring a license from the state. You can engage in tutoring both as an entrepreneur and without registering an individual entrepreneur. But it is worth paying attention that if a citizen is not registered as an entrepreneur, then his services cannot be systematic.
2. Cleaning of residential premises. A citizen can provide residential cleaning services without issuing an IP. These services can be arranged by entering into a simple service contract, the provider of such services will pay the usual standard personal income tax of 13 percent.
3. Day care for children. IN modern world private kindergartens providing day care for children have become popular. The implementation of this kind of activity is in the nature of individual labor pedagogical activity, which does not require a license.
4. Some agricultural services. One-time agricultural services that are not permanent in nature do not require official permission from the state. Taking a special case, it should be noted that such a service will be the provision of a land plot for rent.

Criminal liability and possible penalties

As mentioned above, the Criminal Code provides for quite serious sanctions for carrying out illegal business activities. Criminal liability occurs:

• in the case of systematic recorded employment in illegal business activities;
• in the event of receipt of income from illegal commercial activities on an especially large scale;
• when causing significant damage to citizens of the Russian Federation, organizations and state interests in the course of illegal business activities;

When acquiring profit on a large scale, the offender may be liable in various forms, which have an alternative character:

• pecuniary recovery up to 300,000 rubles;
• recovery of wages of the convict (other type of income received) for a period of up to 2 years;
• arrest up to 6 months;
• mandatory work for up to 480 hours;

For a more serious violation of a criminal nature, where the aggravating elements are the group commission of a crime, as well as the receipt of monetary benefits on an especially large scale (6,000,000 rubles), the following types of sanctions are provided:

• fine from 150,000 to 500,000 rubles;
• offender's wages (other income) for a period of 1 to 3 years;
• imprisonment for up to 5 years with an accompanying fine of up to 80,000 rubles or recoverable income from illegal operation for a period of up to 6 months, and also without additional penalties;

Tax liability and penalties

In connection with the changes that have taken place, today there are two types of tax offenses related to the illegitimate activity of a private entrepreneur and organization:

• Violation of the terms of registration (filing an application);
• Functioning without appropriate tax registration - registration.

1. Penalty for late registration with the Federal Tax Service has a fixed nature and amounts to 10,000 rubles. According to Art. 83 of the Tax Code, the taxpayer is obliged to submit documents for registration within 10 days after state registration. If state registration is carried out at the location of a separate subdivision or at the location of real estate - within 30 days.
2. Entrepreneur not registered with the Federal Tax Service. If at the time of the audit by the tax inspectorate a person engaged in entrepreneurship did not submit a package of documents for the purpose of registration, then such a person bears tax liability. For this type of misconduct, a monetary penalty is expected in the form of 10 percent of the income received by the offender from his illegal activity. The minimum fine is 40,000 rubles.

Protection from illegal business activities

If you have caught an enterprise or entrepreneur in illegal operation, and believe that such activity harms you in a way, you always have the right to contact the control and law enforcement agencies in order to apply enforcement measures and bring the offender to justice.

The most common cases of appeal are applications to the police, prosecutors and tax authorities

Many organizations or individual entrepreneurs do everything according to the law: register where necessary, obtain permission / licenses, pay taxes. However, sometimes people do not do this, although they are actually engaged in some kind of business.

What to do if you become aware of this? Where and how to file a complaint?

Where can I report illegal business activities?

Sometimes you can come across a statement: is it really possible to honestly do business in our country? People just survive, how can they? Why report anything?

It is important to distinguish what is at stake here. If a retired woman knits baby booties and sells them near the metro once a month and for a penny, this is one thing. But if a neighbor turned an apartment into an Internet cafe with a bunch of visitors and real (and not bad) income, this is different.

In Russia, the punishment for illegal entrepreneurial activity is still quite mild. Of course, the scale of the offense or crime, as well as the damage caused, is important. Entrepreneurship without legal grounds is a complex problem. Ordinary people can suffer after purchasing low-quality goods, organizations - from "fake" services, the state - because of underpaid taxes.

And what happens if some pseudo-firm builds a house without a license? Or shopping mall? Oddly enough, despite the severity of all the requirements, this still happens.

That is why it is necessary to complain about the NAP. The question arises: where and to whom?

• The most logical answer is to the Office or the Department of Economic Security (UEB / OEB). This organization is one of many in the system of the Ministry of Internal Affairs of Russia. Previously, the units were called OBEPs.
• Other possibilities are to send a complaint to the police, the prosecutor's office, the tax office.

Also try to involve public organizations or independent communities. Further - in more detail.

The following video, using the example of Ufa, talks about where to turn if you have identified illegal business:

What is required to file a complaint?

To begin with, you need complete confidence that the person (people) you know is really committing an offense (crime) and illegally doing business. For example, behind the fence of your suburban area a neighbor has set up a barbecue, cooks all day long, and in the evenings, behind a brightly lit window, counts the cash. And all this without the presence of an individual entrepreneur / LLC, a cash register and various permits.

In general, it all depends on how dangerous the illegal activity is, as well as on its scale. In addition, you will have to somehow confirm your statement.

• For example, you contacted a company to conclude a contract. They asked to show a license or certificate of registration of the company, but you were refused. This will be your argument when filing a complaint.
• The company estimated its services at one hundred thousand rubles, but only fifty is indicated in the contract? Moreover, the receipt of the remaining amount is confirmed by some dubious receipt? Here is another argument.

Surely this is a concealment of income and non-payment of taxes, especially if there are hundreds of such contracts.

• Copies of contracts and financial documents should help.
• Photo and video shooting, copies of appeals that have already been submitted earlier, but for some reason remained unanswered, screenshots of pages from social networks - the evidence base can be very extensive.

In general, before filing a complaint, you can get advice on a “hot” phone or on visiting days. Specialists of any government agency should definitely delve into the situation and give useful advice.

How to make an application?

Any sample in this area simply does not exist. Even ready-made forms of organizations facilitate the task of applicants only by the presence of a “header”. So the application will have to be written in your own words by hand or printed in a text editor, and then sent to the printer.

An important caveat: anonymous statements of this nature are not accepted. You will need to provide your details, including contact information.

Below is a tentative plan that will allow you to make an application quite simply. It all starts with the addressee in the upper right corner. A little lower in the middle is the word "Statement". The text itself follows:

1. Whoever commits a violation is engaged in doing something without a license, and so on.
2. The nature of the act (construction of cottages, the maintenance of cafes, the sale of alcohol, and so on).
3. Systematic action (mandatory). Specify days, times of day, and so on.
4. Please take appropriate action.
5. List of attached documents (if any).

Depending on the organization where you plan to apply, the application may have some specifics.

To the tax

A complaint to the Federal Tax Service can be called auxiliary. This department is in charge of taxes exclusively; they are unlikely to understand the intricacies of the Code of Administrative Offenses and the Criminal Code. A complaint to the tax office should indicate violations in this area.

To the prosecutor's office

Here you can already state the crime as a whole. Especially if a statement had already been filed with the police, but the response was an unsubscribe.

There is no single sample application for illegal business activities to the prosecutor's office, as well as to the police. But on the spot, the employees of these bodies will definitely help you with the preparation of the document.

Where else can you report illegal business activities, maybe to the tax office? Let's find out further.

To other organs

• In the OEB, you can declare about. The application will be written to one of the specialists, who, if necessary, will send requests to other bodies / services (the same tax office).
• In addition, you can visit the reception of the deputy, on the site of which lawlessness is happening.
• There are also various public organizations that support legitimate businesses and fight as much as they can with unauthorized ones.
• In addition, independent resources can be found on the Internet. Enthusiasts of various specialties help people understand their problems, make complaints, suggest where and how best to turn.

It's also important to remember.

More and more people are engaged in entrepreneurial activity today. There is a certain procedure for starting any business, the legislative framework and responsibility for violation of the law. Increasingly, cases of illegal business activity or fraud are emerging.

What is illegal business activity

Illegal entrepreneurship is the implementation of entrepreneurial activities in violation of the law. The main criteria: lack of registration, violation of registration rules, lack of a license, provision of false information to the tax authorities.

Illegal activities, as a rule, are aimed at obtaining maximum profit, bypassing the tax authorities.

Each person sells something or provides services during the period of his life. It would seem that there is nothing illegal in the sale of used equipment, clothing, real estate. Someone can do a friend's hair at home or fix a car. But if you do it all the time, then it is illegal business.

The actions of one person will in no way affect the formation of the state's economy, and if you bring all the illegal figures together, this causes considerable damage to the state and social sphere.

The law is unified, non-compliance with it leads to criminal, administrative and tax liability, which is provided for both for an illegally functioning large corporation, and for a person engaged in the systematic sale of vegetables on the market.

Types of illegal business activities

Illegal business is divided into three types:

1. commercial activity without registering And . A person constantly carries out certain activities: provides services, sells products. This is usually the only source of income, but the tax authorities and Pension Fund no deductions are made. The most striking common example is the rental of apartments by private individuals. Real estate for rent paid basis, but the activity is not registered in the tax office.
2. Entrepreneurship without a license, if so provided by law. There are groups of goods and services for which you need to purchase a license: alcohol and tobacco products, cosmetic and medical services. The license costs a lot of money. Therefore, many entrepreneurs are engaged in business either without a license, at their own peril and risk, or provide services at home.
3. Conducting business activities in violation. For example, an entrepreneur submits documents to open one business, say, a household chemicals store, but actually opens a hairdresser or cafe. It happens that the address in the registration documents does not match the actual location of the production premises.

All this can be attributed to illegal business.

Complaints about illegal business

Everyone knows that you need to pay taxes, but deliberately refuse to do so. Many motivate this by saying that the taxes are too high, the income from the business is not constant, you need to somehow survive. Here it is necessary to divide illegal figures into two categories.

If a person sells children's things for a small price, for example, or sells a sweater knitted by oneself, this can hardly be called illegal activity. But if someone starts providing cosmetic services at home, without having the necessary conditions and appropriate registration, then this is already an illegal activity.

A complaint about illegal business can be filed with the Department of Economic Security, the prosecutor's office, the police or the tax office. At the same time, you need to understand that words cannot be sewn into deeds, evidence is needed.

First, evaluate the scale of the deed. You should not run to the police or the tax office if your neighbor sold a bucket of potatoes on the market. But if a whole beauty salon has settled in one of the apartments, and there is no end to visitors, it is worth signaling to the relevant authorities.

If you yourself became a victim of an illegal business: you bought counterfeit products or used a paid service, as a result of which your health was harmed, you can easily initiate a complaint to the tax office by providing checks and certificates.

Complaint to the tax office

If you have reason to file a complaint against an illegal businessman, you must write an application to the tax office. There is no established pattern. The application must include the following information:

1. Surname and initials of a person engaged in illegal business, and what is its violation. For example, the lack of a license.
2. What is the business: cosmetology, repair of objects, construction or other.
3. What time is the activity.
4. It is necessary to register a request for the intervention of the tax service.
5. A package of documents as evidence.

Important! The tax service will accept the application if you provide the fact of receipt Money entrepreneur. Perhaps you have a receipt, contract or a copy of the document.

Punishment for illegal business

Criminal prosecution against an illegal businessman occurs most often for repeated violations:

• for systematic business without the necessary registration;
• for receiving money from illegal business in especially large amounts;
• for causing material damage to the state and citizens during illegal activities, or causing harm to health.

According to article 171 of the Criminal Code of the Russian Federation “Illegal business”, punishment occurs in the following cases:

1. If a businessman worked without registration and a license, as a result of which great damage was caused to the state, organization or citizens. The activist shall be punished with a fine of up to three hundred thousand rubles or compulsory work up to four hundred and eighty hours. In some cases, arrest is provided for up to six months.
2. For the implementation of the same activity by a group of persons, causing significant damage to the state or citizens, a businessman will be punished in the form of a fine of one hundred to five hundred thousand rubles, forced labor up to five years, imprisonment up to five years with a fine of eighty thousand rubles.

Additional Information. Article 171 of the Criminal Code of the Russian Federation is used extremely rarely, since it is very difficult to prove that an entrepreneur receives large incomes.

Other types of liability of individuals and legal entities

Criminal liability for an illegal act comes into force in the event of damage to the state or social society in the amount of one and a half million rubles or more. In all other cases, administrative liability arises and penalties are applied, the amount of which depends on the degree of violation:

• If the entrepreneur does not register his activity, a fine in the amount of from five hundred to two thousand rubles.
• For the implementation of activities without a license, a fine from two to fifty thousand rubles with the withdrawal of all products. The most widespread is the illegal sale of alcohol.
• Violation of the terms of the license in the process of implementing a business entails a fine from one and a half to forty thousand rubles. For gross violation four to fifty thousand rubles with termination of activity up to 90 days.

What kind of punishment to apply is determined by the court. If the entrepreneur did not take care of acquiring a license to conduct his business, then such a violation is considered the most serious. In this case, serious damage to the health of consumers can be caused.

Administrative punishment is carried out not only for illegal work, but also for the use of other people's logos, copyright infringement, deception of buyers, and the sale of fakes. Get more information about the responsibility of the IP -.

Illegal business and tax services

The tax authorities apply penalties in the form of fines for the illegal activities of entrepreneurs, relying on articles 116 and 117 of the Tax Code. Many believe that if the profit from the systematic sale of products or services is minimal, then this is not punishable.

In reality, it looks quite different. If you, for example, implement via social media handmade products, and they send you cash on delivery for this, it is better to register yourself as an individual entrepreneur, otherwise you cannot avoid tax prosecution. The amount of the fine depends on the type of violation:

1. If the entrepreneur has not registered his activity with the tax office, then the amount of the fine is 10% of all income received by him, but not less twenty thousand rubles. Such punishment is applied to entrepreneurs who, at the time of the detected violation, had never filed an application for registration with the tax authority.
2. If the illegal activity continues for more than ninety days, then the amount of the fine here will be 20% of all profits, but not less forty thousand rubles.
3. If during the inspection it turns out that the entrepreneur registered later than he began to operate in the business sector, a penalty for late registration is provided. Here the fact of receiving the first profit is established. For failure to register up to ninety days, the fine will be five thousand rubles over ninety days ten thousand rubles respectively.

The tax service, in addition to penalties, can make an additional accrual of lost taxes for the time of illegal work. A businessman will be forced to pay income tax on the entire amount that the tax authorities could prove. Penalties for missed tax payments and a penalty for non-payment of them will be 20% of the amount of additional accrued profit.

Important! The tax service has the right to charge fines and penalties, and the punishment is established by a court decision on the basis of current legislation.

What is important to know about illegal business (video)

Let's watch a short video where an experienced lawyer talks in detail about the illegal activities of citizens and gives examples. What are the consequences and punishment for an entrepreneur for illegal activities:

Taxes on business income are quite high today. Many entrepreneurs after paying taxes remain at a loss, so they work without registration. You need to understand that sooner or later you will have to pay not only taxes, but also fines. Before starting any business, calculate everything in advance, and do not delay registration.

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 solutions 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 an entrepreneur finds a warehouse with goods, an operating outlet, notebooks and activity books, then this 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 file 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 their own products. 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 of 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: