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62 articles on economic offences are covered under chapter 22 of the Tax Code of Russia. The following four of them are focused on fiscal offences:
Article 198. Evasion of taxes, fees payable by natural person, and (or) insurance premium payments due from individual payer;
Article 199. Evasion of taxes, fees payable by the company, and (or) insurance premium payments due from public payer;
Article 199.1. Breach of tax agent duties;
Article 199.2. Concealment of funds or assets of the company or individual entrepreneur, which should be used to collect tax in default, fees, insurance premium payments.
According to the Judicial Department at the Supreme Court of the Russian Federation , 273 sentences under these articles were given for 6 month of 2018.
It is worth reminding the content of the articles and punishments for offences:
| Article | Description | Sanctions | ||
| fine, thousand RUB. | forced labor | imprisonment | ||
| Part 1 Art. 198 | Evasion of taxes, fees, insurance premium payments due from natural person on a large scale, i.e. at the amount exceeding 900 thousand rubles for the period of up to 3 consecutive financial years, provided that the share of unpaid amounts exceeds 10% of total payable amount, or at the amount exceeds 2 million rubles. | 100 - 300 | up to 1 year | up to 1 year |
| Part 2 Art. 198 | Evasion of taxes, fees, insurance premium payments due from natural person on a grand scale, i.e. at the amount exceeding 4,5 million rubles for the period of up to 3 consecutive financial years, provided that the share of unpaid amounts exceeds 20% of total payable amount, or at the amount exceeds 13,5 million rubles. | 200 - 500 | up to 3 years | up to 3 years |
| Part 1 Art. 199 | Evasion of taxes, fees, insurance premium payments due from company by failure to submit tax return (calculation) or other documents being mandatory to submit, or by inclusion of false information in the tax return (calculation) or such documents on a large scale, i.e. at the amount exceeding 5 million rubles for the period of up to 3 consecutive financial years, provided that the share of unpaid amounts exceeds 25% of total payable amount, or at the amount exceeds 15 million rubles. | 100 - 300 | up to 2 years | up to 2 years |
| Part 2 Art. 199 | Evasion of taxes, fees, insurance premium payments due from company by failure to submit tax return (calculation) or other documents being mandatory to submit, or by inclusion of false information in the tax return (calculation) or such documents, committed by a group of persons on the basis of prior agreement or on a grand scale, i.e. at the amount exceeding 15 million rubles for the period of up to 3 consecutive financial years, provided that the share of unpaid amounts exceeds 50% of total payable amount, or at the amount exceeds 45 million rubles. | 200 - 500 | up to 5 years | up to 6 years |
| Part 1 Art. 199.1 | Self-interest breach of tax agent duties for the calculation, withholding or transfer of taxes and fees to be calculated, as well as withheld from the taxpayer and transfer to the appropriate budget, committed on a large scale, i.e. at the amount exceeding 5 million rubles for the period of up to 3 consecutive financial years, provided that the share of uncalculated, not withheld or not transferred taxes and fees exceeds 25% of total payable amount, or at the amount exceeds 15 million rubles. | 100 - 300 | up to 2 years or detention for up to 6 months | up to 2 years |
| Part 2 Art. 199.1 | Self-interest breach of tax agent duties for the calculation, withholding or transfer of taxes and fees to be calculated, as well as withheld from the taxpayer and transfer to the appropriate budget, committed on a grand scale, i.e. at the amount exceeding 15 million rubles for the period of up to 3 consecutive financial years, provided that the share of uncalculated, not withheld or not transferred taxes and fees exceeds 50% of total payable amount, or at the amount exceeds 45 million rubles. | 200 - 500 | up to 5 years | up to 6 years |
| Part 1 Art. 199.2 | Large-scale concealment of funds or assets of the company or individual entrepreneur, which should be used to collect tax in default, fees, insurance premium payments | 200 - 500 | up to 3 years | up to 3 years |
| Part 2 Art. 199.2 | Grand-scale concealment of funds or assets of the company or individual entrepreneur, which should be used to collect tax in default, fees, insurance premium payments | 200 - 500 | up to 5 years | up to 7 years |
If those committed crimes under these articles for the first time, they will be exempted from criminal liability in case of payment of arrears and corresponding penalties in full, as well as fine at the amount determined by the Tax Code of the Russian Federation.
A company’s success depends largely on its annual net profit. A positive result is a sign of a company’s successful operation, but it is just a basis for the company’s future financial stability.
Margin of safety indicates the company’s resistance to changes in business environment, which is absolutely vital for assessment of companies and whole sectors of unstable Russian economy.
Information agency Credinform has prepared a ranking of Russian industrial machine engineering companies by their margin of safety. The companies of ship and machine-building industries from Saint Petersburg that are part of the United Shipbuilding Corporation have been selected for the ranking. A number of design centers, ship-repairing and machine-building enterprises throughout Russia are under this holding company’s management. Margin of safety calculation was based on the data from the Information and Analytical system Globas, and the data was ranked in descending order (Table 1).
Margin of safety indicates the possible level of drop in revenue for making net profit and no loss at year-end. The point at which this condition is reached is called the break-even point.
| Name, INN, region | Sales revenue, billion RUB | Margin of safety, % of revenue | Solvency index Globas | ||
| 2016 | 2017 | 2016 | 2017 | ||
| 1 | 2 | 3 | 4 | 5 | 6 |
| Admiralty Shipyard INN 7839395419 Saint Petersburg |
44,93 | 27,08 | 77,53 |  46,34 |
208 Strong |
| Nevskoe Design and construction office INN 7801074335 Saint Petersburg |
1,25 | 1,06 | 27,81 |  32,67 |
194 High |
| ST. PETERSBURG MARINE DESIGN BUREAU MALACHITE INN 7810537540 Saint Petersburg |
6,56 | 8,09 | 25,82 | 31,4 |
193 High |
| CENTRAL MARINE DESIGN BUREAU ALMAZ INN 7810537558 Saint Petersburg |
3,92 | 3,28 | 12,84 | 12,67 |
187 High |
| CENTRAL DESIGN BUREAU FOR MARINE ENGINEERING RUBIN INN 7838418751 Saint Petersburg |
37,62 | 38,07 | 16,08 | 10,05 |
209 Strong |
| SEVERNOYE DESIGN BUREAU INN 7805468860 Saint Petersburg |
2,65 | 2,04 | 6,16 | 3,81 |
222 Strong |
| CKB OSK - ICEBERG INN 7801573983 Saint Petersburg |
0,31 | 0,29 | No | 3,57 |
259 Medium |
| Baltic Shipyard INN 7830001910 Saint Petersburg |
0,32 | 9,67 | No | No | 231 Strong |
| SREDNE-NEVSKY SHIPYARD INN 7817315385 Saint Petersburg |
5,11 | 6,84 | No | No | 259 Medium |
| Proletarskiy plant INN 7811039386 Saint Petersburg |
1,94 | 3,18 | No | No | 279 Medium |
| SHIPBUILDING PLANT SEVERNAYA VERF INN 7805034277 Saint Petersburg |
13,60 | 19,18 | No | No | 267 Medium |
| Average industry value | 10,74 | 10,79 | 15,11 | 12,77 | |
The enterprises in the Table 1 form the ship industry of Saint Petersburg. The analysis shows that two-thirds of the companies have a margin of safety that is lower than the average industry value, and four companies do not have one at all. Lack of margin of safety for Baltic Shipyard, Sredne-Nevsky Shipyard, Proletarskiy Plant and Shipbuilding Plant Severnaya Verf is caused by their loss as the result for the year. A decrease in revenue of the above-mentioned companies will result in a further growth of net loss.
As a result of margin of safety calculation, specialists of the Information Agency Credinform have pointed out the industry leaders - Admiralty Shipyard, Nevskoe Design and Construction Office, St. Petersburg Marine Design Bureau Malachite. These enterprises have the strongest resistance to changes in economic environment. However, it is necessary to mention that a large margin of safety does not guarantee sustainable development for several years, as in only one year the Admiralty Shipyard had a drop in its margin of safety by over 30%. One of the key factors that influence the margin is decrease in sales revenue caused by drop in the number of orders.