Pre-Trial Settlement of Tax Crimes: ALI Joins the Working Group

The Agency for Legislative Initiatives (ALI) is contributing to the development of a new mechanism for the pre-trial settlement of tax-related criminal offences. Yevhen Krapyvin, Head of the Law and Order Area at ALI, has joined the thematic working group organised by the Economic Security Bureau of Ukraine (ESBU).

The group will develop amendments to the Criminal Code and the Criminal Procedure Code of Ukraine, as well as other legislative acts, to introduce a mechanism for settling such offences. The proposals prepared by the group will subsequently be submitted to the Government for consideration.

According to Yevhen Krapyvin, the Criminal Procedure Code of Ukraine currently provides an alternative means of resolving criminal-law disputes in tax-related criminal offences — a ‘tax compromise’. In practice, however, its application is significantly limited, so it should either be improved or other instruments should be sought.

For example, the Overarching Strategic Plan for Law Enforcement Reform for 2023–2027 provides for an instrument known as ‘transactions’. This is a form of ‘criminal fine’ for businesses willing to cease the offence, pay the taxes due and make the corresponding payment. The Netherlands and Belgium have experience with this type of fine, so their models could serve as a basis for a similar mechanism in Ukraine.

The working group was established by ESBU Order No. 301 of 22 June 2026. Its members include the Agency for Legislative Initiatives as well as representatives of the ESBU, the Prosecutor General’s Office, the Business Ombudsman Council, the American Chamber of Commerce in Ukraine, the European Business Association, the Ukrainian Bar Association, ICC Ukraine, the Kyiv School of Public Administration named after Serhiy Nyzhnyy and other expert organisations and institutions.

The Bureau had previously held a series of consultations with representatives of business, the legal community, state authorities and civil society on introducing a new mechanism for the pre-trial settlement of tax offences.