Uzbekistan Tightens Penalties for Tax Violations

Tashkent, Uzbekistan (UzDaily.com) — Uzbekistan has strengthened liability for tax offenses following the signing of a new law by President Shavkat Mirziyoyev, introducing amendments and additions to several legislative acts.

According to changes made to the Criminal Code, intentional concealment of income or other taxable objects, underreporting of the tax base, or tax and levy evasion in a significant amount, if committed repeatedly after an administrative penalty, will now carry stricter punishment.

Such offenses are punishable by a fine ranging from 100 to 150 base calculation values, corrective labor for up to two years, restriction of freedom from one to three years, or imprisonment for the same period of one to three years. Previously, the maximum penalty was limited to a fine of up to 15 base calculation values or corrective labor for up to two years.

Amendments have also been introduced to the Criminal Procedure Code. A new legal category has been established — the representative of a business entity — who may participate in criminal proceedings as a public defender. Such a representative may be appointed by the Chamber of Commerce and Industry or selected by the entrepreneur and is allowed to participate at the stages of inquiry, investigation, and trial.

In addition, changes to the Tax Code stipulate that penalties will not be accrued on additionally assessed and recovered taxes and duties during the investigation period prior to a court decision.

The new law will enter into force three months after its official publication.