Forged invoices: up to seven years' imprisonment

A little over a month has passed since new provisions of the Criminal Code of the Russian Federation came into force, tightening liability for tax offences.

From 4 December 2024, persons who use forged invoices and tax returns may be held criminally liable, including by imprisonment for a term of up to seven years.

The change concerns everyone whose work involves accounting and tax reporting. Any accountant, or any general director, who files a tax return drawn up on the basis of forged invoices may be held criminally liable.

Invoices and tax returns (calculations) are treated as forged if they contain false information on the shipment of goods, on the performance of work, on the supply of services, or on the transfer of property rights.

The new rules require entrepreneurs and accountants to pay particular attention to checking their counterparties and their documents, so as not to become unwitting participants in a fraudulent scheme.

For many years the tax authorities have been fighting schemes for the unlawful recovery of VAT, and for minimising profits tax, through the use of front companies and individual entrepreneurs. The tax authorities have always worked closely with the law-enforcement bodies. Now, however, with Article 173.3 of the Criminal Code, owners of businesses, general directors and accountants need to be especially careful if they are not to be drawn into fraudulent schemes. We recommend reviewing all contracts for risks of this kind now, and preparing defence files with care in dealings with counterparties. Andrey Rymarev, head of the tax practice at Consul Group, comments.

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