What penalties may be imposed for failure to pay taxes?

In the event of failure to pay or underpayment of taxes on income derived from cryptocurrency transactions, the taxpayer may face both administrative and criminal liability, depending on the amount of unpaid tax and the form of culpability. Pursuant to Article 122 of the Russian Tax Code, a penalty of 20% of the unpaid tax amount is imposed following an audit, and in cases of intentional tax evasion, the penalty increases to 40%. Additionally, interest is charged for each day of delay. If the amount of unpaid tax is significant and there are indications of evasion, criminal liability may arise under Article 198 (for individuals) or Article 199 of the Criminal Code of the Russian Federation (for legal entities and individual entrepreneurs). Possible penalties include: • a fine of up to 500,000 rubles, • compulsory community service, or • imprisonment for up to 3 years (and up to 6 years in cases involving particularly large amounts). Thus, systematic tax evasion related to cryptocurrency transactions may result in severe consequences, making it essential to ensure accurate accounting and reporting in a timely manner.