The Supreme Court confirmed the legitimacy of double tax penalties in the “fragmentation” of the business

The Supreme Court (SC) of the Russian Federation considers it possible to simultaneously impose a fine for the unlawful use of the simplified taxation system (STS) and failure to submit a declaration within the framework of the general system. At the same time, the Supreme Court explains that the fine can be differentiated depending on the severity of the violation. This is important, because as a result of bringing to double liability in the aggregate, the fine can amount to 70% of the arrears, Interfax reports.

The issue of double sanctions was considered by the Judicial Collegium for Economic Disputes (SCES) of the Supreme Court on the example of the lawsuit of an individual entrepreneur (IP) Evgeny Adonin from Krasnodar with the local tax inspectorate. For settlements with the budget, Mr. Adonin used a simplified taxation system. However, the tax inspectorate considered that the amount of income of the individual entrepreneur exceeded the amount allowed for the simplified tax system, and therefore Yevgeny Adonin was transferred to the general taxation system.

As a result, the inspectorate, among other things, accrued additional penalties for IP, and also fined Mr. Adonin for deliberate non-payment of taxes.

The SCES recognized as lawful double punishment for the illegal use of simplified taxation. You cannot be punished twice for the same tax offense, the board explained. However, the payment of taxes and the submission of tax returns are different duties of the taxpayer, the Supreme Court noted.

Maria Fedotova