(Coopers & Lybrand Times, Issue No. 21)

The Parliament adopted amendments to Article 148-2 of the Criminal Code of Ukraine setting out criminal liability for evasion from payment of taxes and other obligatory payments. According to the law tax evasion leading to underpayment of taxes in the amount exceeding Hryvnia (UAH) 1,700 will expose the corporate directors or other individuals involved to two years of corrective service work or a penalty of up to UAH 5,100. Individuals who are found guilty of tax evasion for larger amounts (more than UAH 4,250) may be sent to prison for 5 years or penalised for an amount up to UAH 17,000. Tax evasion for especially large amounts (more than UAH 17,000) will lead to 5 to 10 years of imprisonment and confiscation of personal property.

(Law of 5 February 1997 "On amending Criminal and Criminal Procedural Codes of Ukraine relating to liability for evasion of taxes")