6 concept and consequences of illegal entrepreneurial activity. Illegal business activity

Many of the readers are entrepreneurs and know that such activity can both enrich and ruin. In civil law, private business is interpreted in this way - an activity based on risk, the purpose of which is to make a profit. There are hundreds of types of entrepreneurship - in the first place, of course, trading activities, followed by construction, real estate, etc. Approximately the same number of types of illegal business activities, fines and other liability for which is provided for under the legislation of the Russian Federation.

The concept of entrepreneurship

In Russia, this term is defined using the following features:

All of the above features are typical for commercial activities. In addition, there are additional features that are mentioned in the clarifications of the Supreme Court and the Office of the Tax Service of the Russian Federation: maintaining documentation on transactions that have taken place, as well as on the overall work of an individual entrepreneur, the existence of a relationship between transactions and counterparties, etc.

Illegal business

The legislation of Russia prohibits conducting illegal business activities, for which both administrative (in the form of a fine) and criminal liability are provided. There will be a discrepancy with the law if such activity:

• carried out without registration;
• carried out without a state license.

Without registering

This means that you have not submitted information about yourself as an individual entrepreneur to the tax office, and at the same time you are actively engaged in commercial activities to make a profit.

Under the signs of illegality, such actions of a businessman may also fall, which were initially registered in accordance with the requirements of the law, but then the registration was terminated (upon an application, in connection with a court decision, etc.).

Example #2. Rakitin P.E. has been engaged in commercial activities for a long time (furniture production and subsequent sale), he registered an IP several years ago. In view of the coming economic crisis, Raktinin P.E. decided to stop production and filed an application for exclusion from the register of entrepreneurs, which was done. A few months later, Rakitin P.E. decided to resume production, hired workers, set up machines, restored ties with suppliers and buyers, but did not register again as an individual entrepreneur in the prescribed manner. In this case, there are grounds for holding Rakitin liable for illegal business.

In rare cases, such actions of a private trader are also recognized as illegal when registration is available, but it was carried out illegally. In such situations, the falsity of the documents submitted for registration is revealed, on the basis of which an entry in the register was erroneously made.

Example #3. Konovalov E.N. submitted documents for registration of an individual entrepreneur, among which was an application indicating the OKVED code for retail trade. Based on the submitted Konovalov E.N. documents, an entry was made on its registration as an individual entrepreneur in the register. Later it was established that in fact Konovalov E.N. led wholesale trade, while it was not registered as an individual entrepreneur. Konovalov's actions were regarded as illegal business.

Based on the clarifications of the Supreme Court of the Russian Federation, it follows that the actions of a citizen who initially acquired a certain thing, object, real estate for personal use, and subsequently entered into a lease agreement (even for a long term), will not be considered illegal entrepreneurship, since the property belonging to him was not useful.

Example #4. Nikeshina R.G. acquired one-room apartment in which she lived. A year later, she got married and moved in with her husband, and began to rent out her apartment for replenishment. family budget. In this case, in the actions of Nikeshina R.G. there are no violations, since the originally purchased apartment was intended for personal use. However, if Nikeshina R.G. does not report for additional income and does not pay 13% of it, then there may be questions from the tax inspectorate, up to criminal liability under Art. 198 of the Criminal Code of the Russian Federation.

Without a license

In some cases, provided by law, for the legal activities of an individual entrepreneur, registration alone is not enough, you need to obtain a license.

Thus, in accordance with Federal Law FZ-99 dated 04.05.2011 “On Licensing certain types activities”, a license must be obtained:

• for the production of alcohol-containing products;
• for the activities of credit institutions;
• non-state pension funds;
• joint-stock investment funds;
• insurance activities;
• private security activities;
• for business management apartment buildings etc.

The absence of a license in those cases that are reflected in the FZ-99 list entails liability for illegal business activities for individual entrepreneurs.

Example #5. Leonova A.P., having a higher Teacher Education in area foreign languages, opened an educational center at her place of residence, while she was registered as an individual entrepreneur with the purpose of activity - "providing other types of services." During the audit conducted by the tax authorities, it was found that, in violation of the requirements of the law "On Licensing", Leonova A.P. did not receive a license in accordance with the established procedure for educational activities which was the basis for bringing her to justice.

Violation will also occur in cases where the entrepreneur continues to operate, but:

• the previously obtained license has been cancelled;
• an application for a license has already been submitted to the licensing authority, but a decision has not yet been made (or a refusal to issue followed);
• if the permit has expired.

When an entrepreneur has a license for a certain type of activity and at the same time is engaged in another type, for which a special permit is also required, such entrepreneurship will also be considered not in accordance with the law.

Example #6. Dorin G.O. for many years he was engaged in private medical practice under a license obtained by him in the Ministry of Health of the region. After many years of work, he also became involved in pharmaceutical activities, however, in violation of the requirements federal law, licenses for this species did not receive, was prosecuted in the form of a fine for illegal business activities.

Administrative responsibility

The decision to bring to administrative responsibility Article 14.1 of the Code of Administrative Offenses of the Russian Federation shall be issued by the justice of the peace of the judicial district in whose territory the offense was recorded.

How is a crime detected? With an inspection at the request of citizens or on their own initiative, an entrepreneur can be visited by a representative of the tax inspectorate, the police, the state inspectorate for trade, etc. These officials draw up a protocol, which reflects all the violations that have been recorded.

After the protocol is drawn up, a person can be held administratively liable within two months, after which the proceedings on the material are terminated. According to part 1 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation for illegal entrepreneurial activity without registration is provided fine from 500 to 2000 rubles.

The verification may also consist in conducting a test purchase, the result of which will be significant, indisputable evidence of guilt. Typically, test purchases are used by the police to detect illegal business without a license, often in the sale of alcoholic beverages. In such cases, liability arises under Part 2 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, where the punishment may be in the form of a fine from 2000 to 2500 rubles with or without confiscation of manufactured products.

Example #7. The police received a message about the illegal business activities of IP Rasulov A.A., who traded in products in his own store, located in a residential area of ​​​​the city. From a resident of the house, on the ground floor of which there was a shop, there were complaints that Rasulov did not have a license to sell alcoholic beverages. At the same time, as follows from the complaints, at night he sells vodka and beer to people who are in the yards residential buildings immediately consumed purchased drinks. During the test purchase, the fact of selling alcohol in the absence of a license was confirmed, a protocol was drawn up under Part 2 of Art. 14.2 of the Code of Administrative Offenses of the Russian Federation. Subsequently, Rasulov A.A. imposed a fine of 2500 rubles.

Part 3 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation provides for punishment in the form of a fine up to 2000 rubles for illegal business when there are violations of the terms of the license. If such violations are recognized as gross, then punishment is imposed under part 4 of the specified articles of the Code of Administrative Offenses RF (fine up to 8000 rubles). For each type of activity, the Decree of the Government of the Russian Federation establishes individual criteria according to which this or that violation of the conditions can be attributed to a number of gross ones.

Example #8. Markin E.P. registered as an entrepreneur, he was issued a license for transportation activities by car equipped to accommodate more than 8 people. Markin E.P. challenged in court bringing him to justice under Part 4 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, believing that the lack of equipment for checking the technical serviceability of cars is not a gross violation, he did not agree with the fine of 8,000 rubles imposed on him. Contrary to the arguments of Markin E.P., the court recognized the protocol drawn up against him under Part 4 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, since paragraph 5 of the Regulation on Licensing Transportation approved by the Government of the Russian Federation, the repeated absence of equipment and premises for car repair during the year is considered a gross violation.

Responsibility under the Criminal Code of the Russian Federation

For criminal liability for illegal business, one of the mandatory features, according to Art. 171 of the Criminal Code of the Russian Federation, is the infliction of large damage - that is, in excess of 2 million 250 thousand rubles. Damage can be caused to both citizens and any organizations, as well as the state.

As an alternative sign, which can be instead of “causing major damage”, “deriving income” in a similar amount is provided.

Example #9. Kolaev G.E. carried out private security activities as an individual entrepreneur in the presence of an expired license. He was prosecuted for committing a crime under Part 1 of Art. 171 of the Criminal Code of the Russian Federation, but he appealed against the guilty verdict due to disagreement with the accusation - he believed that he had not caused harm to anyone. As a result of the appeal hearing of the case, the verdict was left unchanged, since his income from illegal activities for 2019 amounted to 3,500,000 rubles, that is, exceeded 2,250,000 rubles, and the presence of the sign of “causing major damage” is not required here.

It should be noted that when recalculating income, according to the clarifications of the Supreme Court of the Russian Federation, the proceeds received by the entrepreneur without taking into account expenses and expenses, as well as taxes, are taken into account.

According to part 1 of Art. 171 of the Criminal Code of the Russian Federation for illegal entrepreneurship (both without registration and without a license or in violation of the terms of a license) threatens fine up to 300,000 rubles or compulsory work up to 480 hours.

If there are additional signs (part 2 of article 171 of the Criminal Code of the Russian Federation), the punishment for illegal business activities can be in the form of:

• fine up to 500000 rubles;
• imprisonment up to 5 years with a fine of up to 80,000 rubles or without it.

Such additional (qualifying) features may be:

1. commission of a crime by an organized group - when several criminals have united in order to carry out entrepreneurial activities illegally, while roles are clearly distributed between them, each receives a part of the income, etc.
2. if the income received as a result of criminal activity is especially large, that is, it exceeds 9 million rubles.

Aggregate with other crimes

Often, along with illegal entrepreneurial activity, there are other offenses in the actions of the perpetrator, for example:

• the use of someone else's trademark or name, various product designations belonging to another organization - then the actions are additionally qualified under Art. 180 of the Criminal Code of the Russian Federation;
• production, storage, transportation or sale of goods without excise marking, if it is mandatory in accordance with the law - there will be an additional qualification under Art. 181 of the Criminal Code of the Russian Federation;
• if a product is sold that does not meet the safety requirements of citizens, then additionally the actions of the violator will be qualified under Art. 238 of the Criminal Code of the Russian Federation.

Usually the purpose of illegal business is tax evasion. Meanwhile, if an individual entrepreneur conducts illegal activities, additionally qualify his actions under Art. 198 of the Criminal Code of the Russian Federation (non-payment of taxes) is impossible. During the investigation, all income derived by the guilty will be recognized as material evidence in the framework of a criminal case under Art. 171 of the Criminal Code of the Russian Federation and, in the event of a guilty verdict, everything will be turned into state revenue.

If an entrepreneur has carried out such criminal activities as the sale of weapons, the manufacture of psychotropic substances, etc., then these actions are fully covered by specific articles of the criminal law, without Art. 171 of the Criminal Code of the Russian Federation.

Results

So, you should know about liability for illegal entrepreneurship under Article 171 of the Criminal Code of the Russian Federation:

1. it occurs as a result of a person carrying out permanent activities aimed at systematically extracting profits without state registration, without a license or in violation of licensing conditions, if such actions caused damage to citizens in the amount of more than 2,250,000 rubles, or income was generated for this amount (if less than 2,250,000 - liability arises according to article 14.1 of the Code of Administrative Offenses of the Russian Federation);
2. both an entrepreneur and a person who actually conducts such activities, but does not have state registration, as well as a head legal organization whose activity is not registered;
3. any regulatory authorities, as well as the police and the prosecutor's office, can conduct an inspection and identify violations, where you can write a complaint, if necessary, declare the fact of illegal business;
4. the maximum punishment provided for by Article 171 of the Criminal Code of the Russian Federation is imprisonment for up to 5 years.

Many people have a question: "What is illegal business. How to qualify it, according to what criteria? What is the responsibility for business without registration?"

Any of us at least once had to make deals, do some work. Often they are of a personal, private nature, are isolated and of no interest to official bodies. But other deals, contracts are concluded constantly and bring regular income. These are the deals that can arouse the curiosity of the tax.

For example, if you bought a plot of land, and then, after a while, sold it and at the same time made a profit, then this is not illegal business, because deal was a one off, concluded between individuals and therefore does not fall under the category of entrepreneurial activity.

But if a person is regularly engaged in the purchase of land (as well as equipment, cars, etc.) for the purpose of resale and profit, then such a person is an entrepreneur. Moreover, if he is not registered in the manner prescribed by law, has not received a license (if required), then the entrepreneur is illegal.

Some "entrepreneurs" deliberately evade tax evasion, while others do not even realize that their activities fall under the definition of entrepreneurship, which means that a person must. Entrepreneurial activity may be different: renting out premises, training, massage and soot, repair of equipment, provision of different kind consultations, tailoring, development of souvenirs, design services, website development, etc.

Often people who are engaged in entrepreneurial activities consider themselves so-called freelancers. Usually, they are paid for the work done either "in a black way", without any contracts, or under work contracts, i.e. taxes, how, the company for which they wrote pays for them advertising article, made a transfer or provided any other one-time service. Therefore, if a person's activity is episodic and the income is very modest, such work is your own business.

Note: The sale of personal belongings, the performance of minor work and assignments from time to time does not entail either administrative or criminal liability. This also does not apply to a one-time rental of your apartment.

The difference between entrepreneurial activity and freelancing lies in the fact that it is built on a permanent professional basis and its main goal is to make a profit. If you have made a large profit from the sale of your own property, this is not considered entrepreneurship. In other cases, when there is independence, the implementation of work on an ongoing basis in order to generate income, and there is no registration, you can make trouble.

Penalties for illegal business want to increase

It is proposed to increase fine for illegal business, setting its size from 3 to 5 thousand rubles.

SIGNS OF ILLEGAL BUSINESS ACTIVITIES

1. independence of economic activity and its implementation at one's own risk;
2. systematic profit as the goal of activity;
3. use of property, sale of goods, performance of work or provision of services as sources of profit.

At the same time, the signs of entrepreneurial activity must be distinguished from the forms of illegal entrepreneurial activity enshrined in the disposition of Article 171 of the Criminal Code of the Russian Federation.

Autonomy of economic activity implies, first of all, that an individual or legal entity - an entrepreneur participates in civil circulation directly, on his own behalf, by his own will and in his own interest.

So, economic activity, devoid of independence, cannot be considered as entrepreneurial. It's already labor Relations between employee and employer. And such activities are most often legally formalized by an employment contract, even if not properly executed. The employment contract is different from ( characteristic of entrepreneurship) with its subject.

The subject of the employment contract is "the living labor of the worker itself". Accordingly, in labor relations, the employee becomes subordinate to the employer, disciplinary relations arise, the work of the employee is organized by the employer, who appropriates income and bears the commercial risk of losses from entrepreneurial activity.

THREE FORMS of illegal business:

• without state registration,
• without a license
• in violation of the license.

Even if you legally registered as an individual entrepreneur, but did not receive a license for the activity that requires, you are also working illegally, i.e. you are an illegal business. Moreover, it must be remembered that each type of activity may require a separate license, and if you do not have one, you are engaged in illegal business activities. This is also worth considering.

Note: For example, having opened a treatment center, you should not sell medicines until you receive a separate document.

Criminal, administrative or tax LIABILITY

It occurs if the actions of the entrepreneur caused serious damage to citizens, organizations or the state, or a large amount of income was generated (i.e., more than 1 million 500 thousand rubles).

Note: Note to paragraph 2 of Art. 169 of the Criminal Code of the Russian Federation.

In other cases, the perpetrators are administrative responsibility in the form of fines. As a punishment, Art. 171 of the Criminal Code of the Russian Federation provides for a fine (in the amount of up to 300 thousand rubles or in the amount wages or other income of the convicted person for a period of up to two years), compulsory work up to 480 hours) or arrest for up to six months.

For example, you decide to make a lot of money by reselling some expensive product (car, land, building materials, etc.). In one case, such a transaction may, due to its singularity, be excluded from the definition of entrepreneurial activity, in the other, due to the receipt of a rather large income, it can be attributed to illegal entrepreneurship.

Tax liability for illegal business

In the Tax Code of the Russian Federation, liability for activities without registration is provided for in two articles at once:. For evading registration with the inspection, a fine of 10 percent of the income received, but not less than 40 thousand rubles, is threatened.

According to government estimates, about 20 million able-bodied Russians do not declare the sources of their income. Approximately half of them run their own, often small, illegal businesses. What is the penalty for illegal entrepreneurial activity in 2019?

What is entrepreneurial activity

But first, what is entrepreneurial activity? How is it different from employment? And why is illegal business prosecuted by law?

The concept of entrepreneurship is established by Article 2 of the Civil Code. It's independent risky activity aimed at systematic profit. At the same time, the entrepreneur receives income not from the performance of labor duties, but from the sale of goods, the performance of work, the provision of services, and the use of property.
If you compare an entrepreneur with an employee, you can identify a number of differences.

Entrepreneur	hired worker
Independently establishes relationships with the consumer, performing the entire cycle from finding an order for a product or service to receiving payment for it.	Works under the control of the employer, often performs only one function in the consumer service cycle. Receives payment from the employer.
He risks not getting paid for his goods and services, but if successful, manages the income from the business at his discretion.	Protected labor law, receives a salary, regardless of personal results. In this case, the employer pays the employee only a part of the profit earned by him.
Independently provides its own pension and health insurance, pays taxes on income received from business.	The employer pays for the pension, social and medical insurance of the employee, he also withholds and transfers personal income tax from the salary.

If business is conducted without registration, then the state does not receive anything from such a commercial entity. But at the same time, an illegal entrepreneur enjoys all the rights of a citizen, plus he can count on free medical service and social pension. And this happens at the expense of law-abiding business and its employees, who just pay taxes and contributions.

The state is trying to return the shadow business to the legal field different ways including by imposing administrative, tax and criminal sanctions.

Administrative sanctions

The current norms of Article 14.1 of the Code of Administrative Offenses of the Russian Federation establish a fine for illegal business activities in 2019 in the amount of 500 to 2,000 rubles. If a citizen is illegally engaged in activities that require a license (which is issued only to registered entities), then the fine here is slightly higher - from 2,000 to 2,500 rubles.

In addition, a registered organization or individual entrepreneur receives the status of commercial entities and is required to comply with numerous legislative norms. This is, at a minimum, the timely submission of reports, the payment of taxes and contributions, the fulfillment of the obligations of the employer, the application cash register.

At the same time, fines are imposed on legal traders for violating the laws governing business, and these are often very significant amounts. For example, for placing advertisements without the consent of the local administration, a legal entity can be fined up to 1 million rubles.

Thus, if we talk about administrative responsibility for illegal business, then the sanctions currently applied do not have any stimulating function. Moreover, this situation provokes even law-abiding citizens who cannot compete with illegal businesses to go into the shadows.

Tax Penalties

Tax legislation does not establish liability for illegal business, but imposes penalties for non-payment of tax or non-registration.

If it is proved that income was received from illegal business, from which tax was not paid, then a fine is collected under Article 122 of the Tax Code of the Russian Federation. This is 20% of the tax amount, and for deliberate evasion of payment - 40%. The tax itself and penalties on it will also have to be paid.

If the entrepreneur leads more than 30 days real activity without registration and registration with the IFTS, this threatens with a fine of 10,000 rubles under article 116 of the Tax Code of the Russian Federation.

Criminal liability

A fine for illegal entrepreneurial activity in 2019 may also be imposed as part of criminal prosecution. The amounts here are significant - up to 300 thousand rubles or the income of a convict for a period of up to two years.

However, you can be held criminally liable if the proven income from illegal business was received on a large scale, and this is more than 2.25 million rubles. Anything below is subject to administrative jurisdiction, i.e. under fines from 500 to 2500 rubles.

If the criminal income is received by an organized group, or its size is recognized as especially large (more than 9 million rubles), then the fine rises to 500 thousand rubles, or up to three years of income of the convict. Criminal liability for illegal entrepreneurship also provides for real terms of restriction of freedom - from six months to five years.

Illegal entrepreneurial activity (punishment of an individual)

Why register a business

As can be seen from the size of the sanctions, and judging by the number of illegal businessmen, the established responsibility for illegal entrepreneurial activity does not fulfill its motivating function.

However, every year it becomes more and more difficult to conduct activities without registration, and the reason here is not at all state control. The choice in favor of registered business entities is made by consumers themselves.

If a product or service is obtained from an illegal businessman, then the consumer is not protected by anything here. He cannot obtain a document confirming payment, apply for a warranty repair, replace a defective product, demand a quality work or service.

If we talk about the b2b segment, then it is more difficult for an entrepreneur without registration to find a business partner. The efforts of the tax authorities to control the execution of business transactions are bearing fruit. In order not to be accused of tax evasion, counterparties conduct a thorough analysis of the future partner before concluding transactions. And the first point of this analysis is the presence of registration in the state register of individual entrepreneurs or legal entities.

A new form of entrepreneurial activity

Usually, when talking about registering a business, they mean an individual entrepreneur or LLC. But although these organizational and legal forms are very popular, they have a lot of disadvantages. This is a fairly high tax burden, and the complexity of management, and the need to constantly submit difficult reports, and the use of a cash register, etc.

For several years now, the state has been trying to create new form entrepreneurial activity - self-employed persons. In fact, this category includes all small sellers and performers who have a small income and do not attract employees to their business.

Of course, they could register as an individual entrepreneur, but the following nuances stop them:

• the irregular nature of the business;
• the need to pay insurance premiums (in 2019 this is at least 36,238 rubles), even if the activity does not bring any profit;
• the obligation to use a cash register, the acquisition and annual maintenance of which exceeds 25 thousand rubles;
• complex reporting, for which you have to pay an accountant.

What was needed was a mechanism that would allow these individuals to work legally, but simplify the accounting of their income and the payment of taxes.

However, the first experiment aimed at bringing illegal entrepreneurs out of the shadows failed. A very narrow circle of performers was classified as self-employed: tutors, domestic staff, nannies and nurses. Moreover, they do not pay taxes and contributions for two years, but simply register with the Federal Tax Service.

The unregulated status of the self-employed, as well as the need for subsequent registration as an individual entrepreneur, did not bring results. Across Russia, a little more than 1,000 people were registered in this capacity, which is incomparable with millions of illegal entrepreneurs.

But at the end of June 2018, the Federal Tax Service came up with a completely new initiative that could really radically resolve the situation. It is proposed to refer to self-employed individuals who independently sell goods and provide services in various business areas.

Moreover, the tax rate depends on the consumer of the product or service. If this is an ordinary individual, then a self-employed person will pay only 3% tax on the income received. If the buyer or customer is a legal entity, then the tax rate will be 6%.

And most importantly, the tax payment system has been simplified as much as possible. Confirmation of payment for the buyer is issued through mobile app, i.e. no cash register. The self-employed will register in their personal account on the website of the Federal Tax Service, which reflects the income they receive. Each transaction must be taxed. If there is no income, then no tax or contributions will have to be paid.

The implementation of this option in practice will make it possible to bring the majority of small businesses out of the shadows, and they will no longer have to apply fines and other sanctions.

Many of us periodically provide some services to our acquaintances (or their acquaintances): help with repairs, get a haircut, order some goods via the Internet, sew a dress or repair a car. And they do it for a certain fee. And if such a business clearly goes beyond the scope of a small part-time job and begins to bring tangible profits, it can be qualified as illegal business. Not only the tax authorities, but also the police and other structures may be seriously interested in this activity.

You also need to know that in order to perform certain types of work, it is not enough to register as an individual entrepreneur or open a company - you will also need a special permit (license). This applies to medical and cosmetic services, passenger traffic, design work, etc. Running such a business without all the proper paperwork is a much more serious offense than just unregistered business.

Letter of the law

Entrepreneurial, according to Civil Code, is called an activity that is carried out with the aim of systematically making a profit at your own risk. Profit can be obtained through the implementation of work, the sale of goods, the leasing of property, the provision of paid services. A citizen conducting commercial activities must register as an entrepreneur without fail.

As you can see, the main differences between a private transaction between citizens and entrepreneurship are the systematic activity and profit making. So, a one-time purchase and sale transaction or once rendered paid service cannot be considered illegal business activities. But produced twice or more within a year, they become systematic and fall under the definition of commercial activity.

However, if we are talking about the sale of goods at the cost for which it was purchased (or less), this will in any case be considered a private matter: there is no profit. Such activity cannot be considered entrepreneurial, even if it is done systematically.

Illegal business in Russia is considered:

1. Commercial activity, which is carried out without registration of individual entrepreneurship or legal entity. This also includes activities executed with violations or with indication of false data in the registration documents.
2. Entrepreneurial activity carried out without a license, if one is required.
3. Gross violations of licensing requirements.
4. Illegal business can lead to serious trouble for the entrepreneur. For this offense, the legislation provides for three types of liability: tax, administrative and even criminal.

Administrative responsibility

The Code of Administrative Violations for conducting illegal commercial activities provides for the following penalties:

1. For activities that are not duly registered (individual entrepreneurs or LLCs), a fine is imposed in the amount of 500 to 2000 rubles.
2. For the implementation of those activities that are subject to compulsory licensing, without appropriate permits, fines can be imposed: individuals - from 1 to 2.5 thousand rubles, for officials 4-5 thousand rubles, for legal entities - 40-50 thousand rubles. At the same time, unlicensed products and their means of production may be confiscated.
3. If there is a license, but licensing requirements are violated, this is also fraught with penalties: for citizens - in the amount of 1.5-2.5 thousand rubles, for officials - 3-4 thousand rubles, for organizations - from 30 to 40 thousand .rubles
4. If the licensing conditions are grossly violated, entrepreneurial activity may be suspended for 90 days, the fine in this case is 4–5 thousand rubles for individuals and officials, and 40–50 thousand rubles for organizations.

To establish the fact of illegal business can:

• tax office,
• antimonopoly committee,
• consumer market regulators,
• police,
• prosecutor's office.

A protocol on offenses can be drawn up as a result of verification activities: inspection of the premises, test purchases, etc. The reason for such a check can be any signal that illegal business activities are being carried out or violations in work are allowed.

Cases of illegal entrepreneurship are considered by a justice of the peace at the place of its implementation or at the place of residence of the offender. Such a case must be considered within two months after the relevant protocol is drawn up. If this does not happen, the case should be closed. If the protocol is drawn up with violations, there are contradictions and inaccuracies in it, the violator can avoid punishment: while the protocol is being reissued and errors are corrected, the period allotted for bringing to responsibility may expire.

Criminal liability

In some cases, illegal entrepreneurial activity can lead to criminal liability. This happens if the state, organizations or individuals are seriously damaged as a result of such activities, or when the entrepreneur receives large profits from illegal business. A large amount (both damage and profit) is considered to be an amount from 250 thousand rubles, especially large - from 1 million rubles.

In this case, the illegal entrepreneur will be punished in accordance with the Criminal Code of the Russian Federation:

1. Causing damage on a large scale is punishable by a fine of up to 300 thousand rubles or in the amount of the offender's earnings for 2 years, 180-240 hours of compulsory work or imprisonment for 4-6 months.
2. Damage on an especially large scale or the same actions committed by a group of persons entail a fine in the amount of 100-500 thousand rubles or in the amount of earnings for 3 years or imprisonment for up to 5 years with payment of 80 thousand rubles to the state or in the amount of the convicted person's income for 6 months.

The prosecutor's office or the police must prove the fact of causing damage or extracting large income. It must be said that it is quite difficult to detect an offense that would fall under criminal sanctions: test purchases are usually made for small amounts, and therefore they cannot become evidence of super profits.

Responsibility for illegal business carried out commercial organization, falls entirely on its leader. The following are not subject to criminal liability:

• citizens who have labor contract with an illegal entrepreneur and acting within the framework of this agreement;
• owners of real estate for rent, regardless of the amount of income.

There are also circumstances that may mitigate criminal punishment. These include positive characteristics guilty, as well as the singularity of the case of bringing him to justice.

In addition to the very fact of illegal entrepreneurial activity, an entrepreneur can be held criminally liable for:

• use of other people's trademarks without appropriate permissions or indication of knowingly false information about the origin of the goods;
• production, sale, purchase of counterfeit products.

Tax Liability

Sanctions for commercial activity without registration are regulated by Articles 116 and 117 of the Tax Code of the Russian Federation. They involve the collection of taxes not received by the state, and penalties for tax evasion.

1. An entrepreneur who is not registered with the Federal Tax Service is fined in the amount of 10% of his income (at least 20 thousand rubles). Such a penalty is applied if by the time of the tax audit documents for registration were not submitted to the tax office at all.
2. Conducting commercial activities without registration for 90 days or more is punishable by a fine of 20% of income (but not less than 40 thousand rubles).
3. The penalty for late registration of business with the Federal Tax Service is 5 thousand rubles. If the delay in registration is more than 90 days, a fine of 10 thousand rubles will be charged. Such penalties apply if registration documents are submitted after the first revenue, but before the tax audit. Registration delay is considered from the moment of the first revenue.

In addition to fines for the lack of state registration or its delay, the tax authorities may charge additional unpaid taxes. In this case, an illegal businessman will need to pay personal income tax (PIT) on the entire amount of income, the receipt of which will be proven. To this should be added all penalties for late payment of taxes and a possible fine for their non-payment - it is 20% of the additional amount.

All these sanctions are applied to the violator only by a court decision.

As you can see, liability for illegal business activities can be quite serious. In addition, the tax authorities are quite actively involved in collecting information about "illegal immigrants", so it will be quite difficult to hide their activities from the interested services.

In some cases registration can be avoided. For example, if your business is to provide services to enterprises and organizations, you can document this cooperation (conclude a work contract or a one-time labor contract).

Registration as an entrepreneur is also optional for those who rent housing: it is enough to conclude an agreement with the tenant and pay personal income tax (personal income tax). In this case, you only need to file a declaration with the Federal Tax Service annually.

However, if you are seriously planning to engage in entrepreneurial activity, you should not delay its official registration: for a serious entrepreneur, nothing is more important business reputation, and trouble with government agencies can do a disservice here.

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From this article you will learn:

• What business activities are considered illegal
• What types of illegal business activities exist
• What is the liability for illegal business activities
• What is the penalty for illegal business activity
• How to challenge a court decision on illegal business activity

It is difficult to find at least one adult who has never sold anything. Most likely, none of them thought that by selling old furniture, he is engaged in entrepreneurship, because it cannot be ruled out that the buyer acquires a grandmother's chest of drawers in order to sell it more expensively. Such a transaction will no longer be considered private, it will become an entrepreneurial one. Therefore, in order to avoid penalties for illegal business activities, you will need to complete certain documents and pay taxes.

What does illegal business activity mean?

The essence of entrepreneurial activity lies in the specific relationship between individuals and legal entities, organizations and public services, subject to regulation by the state.

First of all, it is necessary to understand what kind of activity can be called "entrepreneurial", and only then draw conclusions about its legality. Guided by the current laws, it is possible to determine the signs of entrepreneurial activity:

• individuality- the field of activity, methods and forms of work are chosen independently and depend on the desire of the entrepreneur. The main criterion for entrepreneurial activity is the implementation original idea in order to make a profit, which usually begins with the development of a business plan (today this stage is often called a startup);
• danger- every entrepreneur is at risk, as he may face circumstances beyond his control that will negatively affect profits. Thus, people who start entrepreneurial activities voluntarily take certain risks that can interfere with the achievement of the main goal - to get good profit(sometimes the result can be completely opposite);
• regularity- the implementation of transactions should be systematic, that is, periodically repeated. If a person once sells a thing that is his property (an apartment, a car, a personal item, etc.), then this cannot be regarded as illegal entrepreneurial activity. In the case of periodic repetition of sales over a long period of time (for example, resale household appliances or cars) activity is considered entrepreneurial;
• goal setting- all actions of the entrepreneur should be aimed at making a profit. Thus, if a person's activity is connected with the implementation of free transactions or with charity, this is not entrepreneurship, but if the activity is carried out for the purpose of making a profit (there are corresponding signs), but there is no income, then it is still considered as entrepreneurship.

In a generalized form, entrepreneurial activity can be represented by the following areas:

• work with property: provision for temporary use (rent) of housing, industrial premises or equipment, cars, etc.;
• sale of goods: anything can be used as a product (from a carnation to real estate);
• provision of services: refers to all types of services for which payment is taken (manicure, massage, transportation, etc.).

As you can see, the range of business activities is quite wide. Certain areas have already been formed that have become priorities, for example, the provision of residential and industrial premises, various vehicles and equipment for rent or sublease, the sale of food products, building materials, household items and other things, construction or repair work, cosmetic and other services.

To prevent your work from falling under the definition of "illegal entrepreneurial activity", you should familiarize yourself with the practice of judicial proceedings and understand the signs of entrepreneurship.

A citizen owns a certain piece of land and real estate located on it. In the contract of sale, this object is referred to as an administrative building, therefore, it cannot be used as a residential building. This citizen enters into an agreement with MTS OJSC and leases this property.

As a result of the trial, the following conclusion was made: citizen N. leased the administrative building belonging to him to a legal entity in order to receive a permanent income, therefore, he had to pay VAT. Since he did not do this, the court of first instance ruled that this was an illegal business activity and imposed penalties on the citizen for violating tax laws.

The court decision was based on the arguments specified in the lease agreement: the duration of the agreement, the conditions for changing and terminating the agreement, force majeure circumstances. In other words, the document indicates the regularity of making a profit and it provides for the risks that an entrepreneur may face during the implementation of his activities.

The Supreme Court of the Russian Federation gave the following ruling (No. 59-KG15-2 of 04/08/2015): “The court of first instance did not take into account the words of the citizen explaining his actions: the building was purchased for resale. This goal was not achieved, and in order to avoid unjustified expenses for the maintenance of the property, he decided to rent it out.

The above definition includes not only the clarifications formulated in the resolution of the Plenum of the Supreme Court of the Russian Federation of November 18, 2004 No. 23 (as amended on July 7, 2015), but also indicates one more criterion taken into account when assessing entrepreneurial activity (a description of the property used to obtain arrived).

It is worth noting that not always the activity for which a person is paid money is considered entrepreneurial.

Suppose you provide services without registering a business activity, which means that you need to conclude a civil law agreement with a client. In this case, your actions do not fall under the definition of "illegal business activity", but this option has a number of disadvantages:

• a ban on advertising services;
• under tax law, these relationships may fall under the definition of "labor relations", and this entails problems for the party receiving the services;
• often, customers prefer registered entrepreneurs or companies, as they can provide them with more favorable conditions.

In order for the activity of a citizen not to fall under the definition of "illegal entrepreneurial activity", he must fulfill 2 conditions:

1. register with the tax authorities by submitting the relevant documents;
2. obtain a license (if necessary).

Illegal entrepreneurial activity in the Russian Federation and its main types

1. Carrying out business activities without proper registration.

In other words, carrying out business activities without registering an individual or legal entity. Entrepreneurial activity is considered legal (registered) from the moment the corresponding entry is made in the state register.

A citizen must not only submit an application to the state registration authority, but also receive an affirmative answer (certificate of the established form). Only in this case, his activity will be considered legal.

Example: citizen Malyshev S.A. did not register his activities and did not pay taxes, although over the past four years he has been selling fruits and vegetables in one of the city's residential areas. His workplace was unchanged and was located at the entrance to the microdistrict. His illegal business activities were noticed and he was fined.

The following were used as evidence:

• testimonies (residents of the microdistrict confirmed that they saw this seller almost every day, he sold fruits and vegetables);
• promotional products (Malyshev distributed around the microdistrict and pasted up announcements with messages about upcoming promotions, such as discounts on goods);
• regular wholesale supply(Malyshev's counterparties confirmed that over the past three years, 2-3 times a week, they brought their goods to this point for sale, the information was confirmed by waybills).

Example: Pismenny E.N. for a long time was engaged in the production of cabinet furniture as an individual entrepreneur. After the onset of the crisis, he decided to stop doing business and filed a corresponding application. He was excluded from the register of entrepreneurs. After six months of inactivity, he decided to take up the old: he hired new workers, re-established the work of the shop, started the machines, resumed business contacts. In general, in fact, the life of the enterprise improved again, but there was no proper documentation. The written one did not pass state registration as an individual entrepreneur, therefore, this is an illegal entrepreneurial activity, for which he is responsible in the manner prescribed by current legislation.

1. Inconsistency of the type of activity declared during registration.

Suppose a person decides to open his own car service: he started its construction and registered as an individual entrepreneur, and after a while he decided to change direction and instead of the planned car service, he opens a point fast food. The entrepreneur did not receive a work permit in the field Catering which means he is illegal.

Example: Tkachev V.I. submits to the registration chamber a package of documents, among which there is an application for permission to conduct retail trade operations (the corresponding OKVED code is indicated). Based on this, it is entered into the appropriate register. However, later it turned out that Tkachev was engaged in the sale of large quantities of goods (wholesale), for which he did not have permission, and he was fined for illegal business activities in 2017.

1. Lack of necessary permits (licenses).

In Federal Law No. 128 (Article 17) complete list types of business activities that require a state license, for example, for the sale of alcohol or tobacco products.

The following cases fall under the definition of "illegal entrepreneurial activity" in 2017:

• permission from state bodies has not been obtained for doing business (if such is provided for by law, and the entrepreneur has not even submitted a corresponding application);
• activities are carried out until the issuance of a permit document (the application is still under consideration);
• the license is revoked, suspended or expired, and the entrepreneur continues his activities.

Example: Entrepreneur Serova N. K. (teacher of foreign languages) registered her activities under the code “provision of other services” and opened an educational center. Guided by the law "On Licensing", she had to obtain a permit (license) to conduct entrepreneurial activities in the field of education. Without it, this is an illegal business activity.

If an entrepreneur, having a license for a certain type of activity, simultaneously conducts business in another direction that requires licensing, then he also violates the law “On Licensing”.

Example: Sokolov V.P. for ten years provided medical services population on the basis of a license obtained from the regional health department. Over time, he expanded his range of activities in the pharmaceutical direction, without obtaining the appropriate license. For this violation, he was fined for illegal business activities.

1. Violation of licensing terms.

The list of these violations is quite large. It includes:

• non-compliance with product requirements (for example, the absence of a date of manufacture or expiration date);
• non-compliance with the technical conditions for the activity (for example, sanitary standards in the manufacture of dairy products);
• violation of territorial restrictions (activities in the territory not specified in the license).

In addition to the above, do not forget that the sale of goods without registration is also an illegal business activity. Failure to comply with the requirements established in the current legislation does not relieve the entrepreneur of responsibility for the illegal conduct of business and failure to fulfill the obligations assumed. Thus, the reason for initiating legal proceedings may be not only claims from state control bodies, but also a statement from counterparties who have suffered damage as a result of the activities of such a businessman.

Who can write a complaint about illegal business activities

To date, the scale of illegal entrepreneurship is incredibly high. If this ratio were expressed in the scheme “one unregistered vegetable seller out of a thousand working with a permit”, then this would not greatly affect the state of the Russian budget and would not cause concern for the Government and the tax system.

Of course, it is possible to understand entrepreneurs who evade paying taxes: their profits are in most cases quite modest, but you should not go beyond the bounds of decency. Naturally, it is unlikely that anyone will complain about a neighbor who periodically bakes cakes to order. But if in ordinary apartment placed a full-fledged bakery or beauty salon and work without any permits and registration, then, you see, this is already too much ...

Not only the regulatory body, but also an individual who has suffered from such activities can convict a businessman of illegal activities. In this case, the person has full right become the initiator of an investigation into the activities of the entrepreneur.

Individuals can file a complaint about an unregistered business with the following control bodies:

• to the department for combating economic crimes (OBEP);
• to the Federal Tax Service (complaint about concealing large income);
• to the police (complaints about the production of unlicensed alcoholic beverages or street trading);
• to the authority issuing licenses (complaints about non-compliance with the terms of the license or its absence);
• to the prosecutor's office (with any complaint, after consideration it will be redirected to the appropriate control body).

If such a need arises, then you can apply to other structures, for example, to public ones (in the absence of action on the part of official representatives of the law).

Representatives of authorities, when considering an application, must check:

1. certificate of registration of entrepreneurial activity;
2. license (if required by law);
3. whether the licensing rules and the validity period of the license are observed.

Note! For lack of a license, a more severe punishment follows than for unregistered entrepreneurial activity!

In case of revealing the fact of conducting illegal business activities, the violator is usually punished. However, to start any action, you must have an appeal that will comply with the rules for processing such documents.

An appeal-complaint about illegal entrepreneurship is drawn up in a free form, the main thing is that the essence of the problem is stated and the cap is correctly designed (to simplify the preparation of the cap, you can use ready-made forms of state bodies).

By law, no more than 30 days from the date of registration are allotted for consideration of a complaint. But, as practice shows, the answer may come later.

If the consideration of the complaint and the adoption of measures on it are of fundamental importance for the applicant, then he can remind himself of himself by submitting the appeal again.

Illegal entrepreneurial activity must have actual confirmation, which will be indicated in the protocol of the supervisory authority. No more than two months should elapse from the moment of detection and suppression of the offense, the measure of restraint is established by the court. If the fact of conducting illegal business activities is proved, then not only administrative and tax penalties can be applied to the violator, but also criminal liability can be brought against him.

What is the punishment for illegal business activity

As a result of unregistered entrepreneurial activity in state budget there is a shortage of funds replenished at the expense of the transferred taxes. Therefore, the tax authorities are most interested in the legality of the activities of citizens.

Illegal entrepreneurial activity (Articles 116 and 117) provides for penalties in the form of fines for tax evasion:

• for persons who did not submit an application for registration of entrepreneurial activity to the Federal Tax Service Inspectorate - 10% of the profit received as a result of doing business (at least 20 thousand rubles);
• for persons who work without registering a business for more than 90 days - 20% of the amount of profit (at least 40 thousand rubles);
• for persons who overdue registration of activities - 5 thousand rubles, and persons who delay registration for more than 90 days are fined 10 thousand rubles. (meaning cases where the entrepreneur made a profit before he was entered into the state register).

Taxes, fines and penalties are charged on all profits received as a result of entrepreneurial activity. In addition, penalties are provided for violation of the deadlines for submitting reports for the period from the start of activities to the day the act is drawn up.

What penalty for illegal entrepreneurial activity to impose for late registration or its absence is decided by the tax authorities (they have the right to review tax payments and calculate the missing amount). If the controlling authorities prove the fact of illegal activity of a citizen, the entrepreneur is obliged to pay the tax accrued on the income of individuals.

To this sum are added:

• penalties for late payment of tax;
• penalty for tax evasion (20% of the additional amount).

The Code of Civil Procedure states that all of the above penalties can be implemented only after the relevant court decision.

Administrative fine for illegal entrepreneurial activity

Court proceedings on illegal entrepreneurial activity should not exceed two months from the date of drawing up a protocol on an administrative offense. The decision is made by the justice of the peace working with this site. If the case is not considered in deadlines, then he must issue an order to terminate the proceedings.

Representatives of various government services can come to the entrepreneur with a check: police officers, tax inspectors, representatives of the state trade inspectorate and others. The reason for the visit may be the statements of consumers, and the initiative of the regulatory authority. The result of the audit should be a protocol in which it is necessary to record all the revealed facts of an administrative violation. After that, office work begins, which cannot last longer than two months.

Work without registration is an illegal business activity according to the Code of administrative offenses for which a fine of from 500 to 2000 rubles (Part 1 Art. 14.1 of the Code of Administrative Offenses of the Russian Federation).

As a check on the activities of the entrepreneur, a test purchase can be carried out, the result of which will be a fact of violation. As a rule, such verification methods are used to identify entrepreneurs operating without a license (usually in the sale of alcoholic beverages). If a violation of the law is revealed, the entrepreneur can be fined for the amount from 2000 to 2500 rubles (part 2 of article 14.1 of the Code of Administrative Offenses of the Russian Federation). In this case, illegal entrepreneurial activity can lead to confiscation of goods.

Citizens who hold managerial positions in enterprises that have violated the law on licensing may be fined the amount from 4000 to 5000 rubles. For legal entities and enterprises for violating the licensing procedure, a fine of 10 times more is provided - from 40,000 to 50,000 rubles.

Example: a resident of the microdistrict filed a complaint with the police about the illegal business activities of G.K. The complaint states that the entrepreneur sells alcohol without having a license to do so. Customers can purchase spirits at any time (even at night), after which they consume them right in the courtyard of the house. The police decided to test purchase, and the fact of this violation was confirmed. Police officers, guided by Part 2 of Art. 14.2 of the Code of Administrative Offenses of the Russian Federation, recorded this violation in the protocol. With regard to citizen Zakharov G.K., penalties were applied in the amount of 2,500 rubles.

Illegal entrepreneurial activity related to violation of licensing rules, in accordance with part 3 art. 14.1 of the Code of Administrative Offenses of the Russian Federation, entails punishment in the form of a fine: for natural persons - up to 2000 rubles, for people holding responsible positions at the offending enterprise - from 3000 to 4000 rubles, for organizations - from 30,000 to 40,000 rubles.

If the violation is classified as gross, the entrepreneur is punished in accordance with part 4 of the said article of the Code of Administrative Offenses of the Russian Federation:

• individuals - a fine from 4000 to 8000 rubles90 days);
• persons holding responsible positions - a fine from 5,000 to 10,000 rubles;
• legal entities- fine from 100,000 to 200,000 rubles or temporary suspension of activities for up to three months ( 90 days).

There is no unambiguous criterion of “gross violation”, they are different for each type of activity.

Example: Entrepreneur A. D. Galkin registered his activities as “road transportation services”, he received the appropriate license and worked on a car equipped to transport more than eight people. Galkin was brought to justice on the basis of Part 4 of Art. 14.1 of the Code of Administrative Offenses of the Russian Federation, with which the entrepreneur categorically disagreed and challenged the decision made against him in court.

Despite all the persuasiveness of Galkin, the court, guided by the licensing regulations, considered that the lack of equipment for checking the health vehicle is a violation that fits the definition of "gross". Thus, the protocol drawn up in relation to the entrepreneur was recognized as justified, and the violator was fined 8 thousand rubles.

If the case concerns large sums and serious damage, then the offender may be held criminally liable.

Criminal liability for illegal entrepreneurial activity

If an entrepreneur worked without registering his business or without obtaining a license (in cases provided for by law), then Art. 171 of the Criminal Code of the Russian Federation. This article provides for punishment for illegal conduct of business that has brought large or especially large income (more than 2.5 million), and also as a result of which the state or its citizens have suffered.

This criminal article is applied infrequently, since it is quite difficult to collect a complete evidence base.

Article 171 of the Criminal Code provides:

Example: citizen Rusaev K.N. was the owner of a company that provided security services. For some time he worked with a license that had expired. The entrepreneur was prosecuted under Article 171 of the Criminal Code of the Russian Federation (Part 1). Rusaev filed an appeal, as he was convinced that no one had been harmed by his activities. During the re-examination of the case, it turned out that illegal entrepreneurial activity brought the owner 3 million 500 thousand income (falls under the criterion of large or especially large). Thus, the verdict remained unchanged.

Please note that in such cases of calculating income, all funds received by the entrepreneur are taken into account, including those that were subsequently spent on the needs of the enterprise and taxes.

To prove the guilt of the entrepreneur (hiding large profits or causing damage), the police or the prosecutor's office must collect an evidence base. It is extremely rare that illegal entrepreneurial activity is punished under the Criminal Code, because law enforcement officers buy goods for a certain amount. In this regard, in most cases they cannot reveal the fact of hiding large incomes.

Usually, criminal punishment is applied to persons involved in the laundering of ill-earned funds. If the matter concerns not an individual entrepreneur, but a company, then the head is responsible for its illegal activities.

Criminal prosecution may be initiated against persons over the age of 16 who are:

• individual entrepreneurs;
• directors and founders of companies;
• owners of unregistered businesses.

A mitigating circumstance is that the entrepreneur has no criminal record.

If an entrepreneur is held liable under the Criminal Code, the court, as a rule, stops at the application of penalties. However, one should not forget that such a violation may be followed by imprisonment if the defendant acted as part of a criminal group (for example, the head and Chief Accountant) or in case of concealment of especially large income.

If the law enforcement agencies do not reveal facts for which criminal punishment follows, then illegal entrepreneurial activity is considered within the framework of administrative law.

Criminal liability cannot be applied to persons who have entered into an employment contract with an unregistered entrepreneur, and owners of real estate that is rented out.

Liability for illegal business activities + totality of crimes

Often, illegal business conduct is accompanied by a number of other offenses that fall under the following articles of the Criminal Code of the Russian Federation:

• article 180: illegal use of a trademark, brand or product label;
• article 181: work with goods that do not have excise stamps (if such are provided for by law);
• article 238: the sale of goods that do not meet sanitary and hygienic requirements and are dangerous for consumers to use.

If illegal entrepreneurial activity is supplemented by these violations, then the criminal punishment is determined by the totality of crimes.

Most often, entrepreneurs do not want to register their activities in order not to pay taxes. Moreover, illegal entrepreneurial activity cannot be considered in conjunction with the article on tax evasion (Article 198 of the Criminal Code of the Russian Federation). The income revealed from the person under investigation will form the evidence base of investigative actions, and if the court passes a guilty verdict, these funds will go to the state.

In cases where illegal activity is related to the supply or sale of weapons, the manufacture or sale of narcotic and psychotropic drugs, it is immediately qualified as a criminal offense and there can be no question of any administrative violation.

If illegal entrepreneurial activity is proved and recognized by the court, then all concluded contracts and agreements are automatically canceled. In this case, the entrepreneur is obliged to fulfill his civil obligations, for example, return the advance payment to the customer and pay a penalty. The client can apply for a refund of the paid funds within 3 years.

If an unscrupulous entrepreneur evades the fulfillment of civil obligations, the customer has the right to resolve this issue in court.

How to appeal a decision on illegal business activities

Not always the accusation of illegal business conduct is accompanied by punishment. A decision on violation of the law is made by the court, and this requires grounds and irrefutable evidence. If a thorough check of all the circumstances of the case has not been carried out, the court will not accept it in proceedings. An inspection is considered completed if:

• representatives of the tax service came to you on an official visit;
• an act on detected violations was drawn up;
• the inspectors who conducted the inspection drew up and signed the final protocol.

It is better to appeal the signed protocol before the case goes to court, since it will be extremely difficult to change anything later.

Only the final document - the protocol - is subject to appeal (in the act, the inspectors only state the fact of the inspection). However, in the process of appealing, you need to refer to the protocol, convincing higher authorities that the facts indicated in the act are not proven.

If an appeal to a higher organization does not bring the desired results, this does not mean that everything was in vain: you will gain additional experience and will know what arguments you can present in court as evidence of your case.

On the judgment may affect the outcome of the appeal of the protocol in a higher organization. In this regard, the court may take one of the following paths:

1. Continue paperwork (the fact of an appeal will certainly affect the outcome of the case).
2. Terminate the proceedings and, based on the outcome of the appeal, drop all charges against the suspect.

Thus, illegal entrepreneurial activity can bring not only the desired profit, but also cause a serious headache. To avoid this, it is better not to go beyond the current legislation.

How to avoid liability for illegal business activities to an individual

If you still decide to circumvent the law and work without registration, then try to involve less attention official bodies to his humble person. In this case, you absolutely do not need any conflicts with customers or competitors; ads only to a minimum.

But keep in mind that in this case, illegal business activity can be punished. Please note that the tax authorities are constantly working to identify shadow businessmen, so if not today, then tomorrow your business will still be known government bodies control. Therefore, the optimal solution to the problem is registration: choose a form of business that does not require large investments and register as a legal entity or individual.

Often after the conclusion of transactions for the sale of several properties or other very profitable sales the tax authorities have a number of questions for the seller regarding the legality of receiving income. It's okay if it's really not an illegal business activity. You can do the following:

• come to a meeting with a lawyer;
• convince the inspector that these sales are not regular and you absolutely do not want to do business in this direction;
• argue that you are the owner of this object of sale and have the right to dispose of your property as you wish.

As a rule, tax and law enforcement services quickly establish where illegal business activities are taking place. Especially when it comes to good profits. Most often, the risk of such entrepreneurship is not justified, so it is easier to register and sleep peacefully. If it so happens that you face administrative or criminal penalties for running an unregistered business, then your first step should be to go to a competent lawyer, because on your own you can hardly prove your innocence.