MOSCOW, June 20 (RIA Novosti) – Russian President Vladimir Putin on Friday backed an incentive initiated by the federal tax authorities to drop criminal charges against tax dodgers, if they pay their back taxes in full.
The Russian leader plans to ask the country’s parliament to support the idea, which was instigated by Russian Federal Tax Service head Mikhail Mishustin during a meeting with Putin.
“If a taxpayer for some reason or another is ready to pay the tax amount owed, as well as fines and penalties, that he is obliged to pay by law, then he may be given the possibility, after paying the [owed] money, to avoid criminal procedures against him,” Mishustin said during the meeting.
“And halt the proceedings? Or not launch a case?” Putin inquired.
“Absolutely true. It seems to me that this would give business a clear signal that if the correlating laws with the Tax Code are followed, then legal proceedings may be avoided,” Mishustin responded.
“Good, formulate your suggestion and we’ll bring it before the State Duma deputies so they support it,” the president said.
Mishustin told Putin the Federal Tax Service and the Investigative Committee held a series of consultations and agreed that the procedures of the Criminal Code should be harmonized with those of the Tax Code.
On Friday, Russia’s Vedomosti newspaper reported the Federal Tax Service and the Investigative Committee have reached a compromise on amending the Criminal Code allowing investigators to open tax cases, without securing the Federal Tax Service’s agreement.
The head of Russia’s Investigative Committee said earlier the Federal Tax Service has no power to effectively solve tax crimes. According to investigators, over the past 20 years only 15 percent of tax crimes have been exposed.