Search


Violations, crimes and penalties - Legal advice for a foreign company doing business in Belarus Making the world a beautiful place - one painting at a time Making the world a beautiful place - one painting at a time

Violations, crimes and penalties

The effective Code of Administrative Offenses of the Republic of Belarus lays out sanctions which may be imposed on a taxpayer who has broken the law.

Below are listed typical violations by taxpayers:
 
- Late registration with the tax authorities is subject to a fine of up to the equivalent of USD 81 for both individuals and legal entities.
If a legal entity or an individual entrepreneur operates without registration with the tax authorities, such legal entity is subject to a fine of 20% of income from its activity, but not less than USD 1,140. An individual entrepreneur is subject to a fine in an amount of up to USD 325.
- Late notification of the tax authorities of the opening (closing) of bank accounts entails a fine in an amount of up to USD 326 for individuals and USD 1,140 for legal entities.
- Late filing of a return entails a fine of 10% of the tax due on the return for individual entrepreneurs and legal entities, but not less than USD 33 and USD 163, respectively.
- Non-payment or partial payment of taxes within the term deter¬mined by the legislation results in a fine of 20% of the tax which was not paid for legal entities and individuals, but not less than USD 163 and USD 33, respectively.
- Failure of a tax agent to withhold taxes entails a fine of 20% of the tax due for individual entrepreneurs and legal entities, but not less than USD 33 and USD 163, respectively. The amount of the penalty can be increased up to USD 977.
- Late payment of taxes is subject to a daily late payment interest of 1/360 of the National Bank's refinance rate (as of 1 January 2008, it comes to 0.028% per day).
 
Fines imposed for non-payment (non-withholding) of taxes may not be applied to those taxpayers (tax agents) who have paid (withheld) full amount of taxes due at the beginning of the audit performed by the tax authorities.
 
In addition to the tax and administrative fines and penalties, Article 243 of the Criminal Code, "Tax Evasion", provides for 3 years imprisonment for ordinary tax evasion and 3 to 7 years imprisonment for the tax evasion which has caused extensive damage to the state budget.

Because of the personal liability that may arise for tax violations, good tax planning and careful compliance are essential for success.