The law eliminates the practice of applying Article 205 "Fictitious Entrepreneurship" of the Criminal Code of Ukraine, which criminally establishes the creation or acquisition of business entities (legal entities) for the purpose of covering illegal activities or activities for which prohibition is prohibited. Accordingly, this article is excluded from the Criminal Code.

The explanatory note states that criminal liability for fictitious entrepreneurship "has long been one of the ways to put pressure on business in Ukraine." Thus, in addition to the very fact of criminal liability for the said act, the supervisory authorities use the sentences and materials of the pre-trial investigation (protocols of questioning of the director of the business entity) as evidence base when being held financially responsible for violations of tax legislation. From now on the person is exempted from criminal responsibility for the actions envisaged by parts 1 and 2 of Art. 205 of the Criminal Code (fictitious entrepreneurship, re-doing it, causing great harm), unless, in the aggregate, it has committed other acts that are subject to the offenses envisaged by Chapters VI and VII of the Criminal Code (crimes against property and crimes in the sphere of economic activity).

In addition, the law increased the penalties for tax evasion, fees (mandatory payments) provided for in Art. 212 of the Criminal Code.

Yes, deliberate tax evasion, fees (compulsory payments) included in the tax system, introduced in accordance with the procedure established by law, committed by an official of an enterprise, institution, organization, regardless of the form of ownership or a person engaged in business activities without creating a legal person or any other person who is obliged to pay them, if these actions resulted in the actual non-receipt of significant funds in the budgets or state trust funds, would be punished by a fine of 3000 untaxed minimum of citizens' income (51000 UAH) 5000 untaxed minimum of citizens' income (85 000 UAH), or deprivation of the right to occupy certain positions or engage in certain activities for up to 3 years.

Actions carried out by prior agreement of a group of persons, or if they led to the actual non-receipt of large-scale budgets or state trust funds, will be punishable by a fine of from 5,000 untaxed minimum of citizens' income (85 000 UAH) to 7,000 untaxed minimum of citizens' income (119 000 UAH) with deprivation of the right to occupy certain positions or engage in certain activities up to 3 years.