Publication date: 29.04.2024
active and purposeful military lawyer with more than 4 years of experience
QUESTION
What penalties are applied by the controlling body in case of non-compliance by the employer with the legislation regarding the conclusion of an employment contract, non-regularization of labor relations with employees (hired persons), payment of income to such hired employees without taxation?
ANSWER
If violations of the labor legislation are detected during the documentary and/or actual inspections, the officials of the control body who conducted the inspection record the fact of such a violation, which is formalized in the inspection act. A copy of the act is sent to the bodies of the State Labor Service of Ukraine for taking measures in accordance with the requirements of the current legislation.
At the same time, if during the inspection, facts of non-compliance by the employer (tax agent) with the legislation regarding the conclusion of an employment contract, non-registration of labor relations with employees (hired persons) and non-calculation, non-withholding and/or non-payment (non-remittance) of personal income tax by the tax agent and/or military levy before or during the payment of income in favor of another taxpayer, then, in accordance with clause 1251.1 of Article 1251 of the Tax Code of Ukraine (hereinafter referred to as the Tax Code of Ukraine), a fine of 10% of the amount of tax to be assessed and/or paid is applied to such an employer to the budget
The same actions, committed intentionally, entail the imposition of a fine in the amount of 25% of the amount of tax to be charged and/or paid to the budget (clause 1251.2 of article 1251 of the Code of Civil Procedure).
Actions provided for in clause 1251.2 of Article 1251 of the Criminal Procedure Code, committed repeatedly within 1095 calendar days, entails the imposition of a fine in the amount of 50% of the amount of tax to be charged and/or paid to the budget (clause 1251.3 of Article 1251 of the Criminal Procedure Code).
Actions provided for by Clause 1251.2 of Article 1251 of the Code of Criminal Procedure, committed for the third time or more within 1095 days, entail the imposition of a fine in the amount of 75 percent. the amount of tax to be charged and/or paid to the budget (Article 1251.4 of Article 1251 of the Civil Code).
In addition, the first to fourth paragraphs of Clause 119.1 of Article 119 of the Code of Civil Procedure define that non-submission, submission in violation of the established terms, submission not in full, with inaccurate information or with errors in tax reporting on the amounts of income accrued (paid) in favor of the taxpayer, amounts of tax withheld from them, as well as amounts charged (paid) to natural persons for goods (works, services), if such inaccurate information or errors led to a decrease and/or increase in the taxpayer's tax obligations and/or to a change in the tax payer , - entail the imposition of a fine in the amount of 1,020 hryvnias.
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The same actions committed by a taxpayer who was fined for the same violation during the year will entail the imposition of a fine in the amount of 2,040 hryvnias.Along with this, Article 1634 of the Code of Ukraine on Administrative Offenses defines that non-withholding or non-transfer to the budget of personal income tax amounts when paying income to an individual, transfer of personal income tax at the expense of the funds of enterprises, institutions and organizations (except in cases where such transfer is allowed by law), non-notification or untimely notification to the state tax inspectorates according to the established form of information on the income of citizens, - entails a warning or the imposition of a fine on officials of enterprises, institutions and organizations, as well as on citizens - subjects of entrepreneurial activity in the amount of two to three tax-free minimum incomes of citizens.
The same actions, committed by a person who was subject to an administrative fine for the same violation during the year, entail the imposition of a fine on officials of enterprises, institutions and organizations, as well as on citizens - subjects of entrepreneurial activity in the amount of three to n tax-free minimum incomes of citizens.
