Complaint to the tax office about illegal business

Despite the fact that the activities of markets must be carried out within the framework of the relevant law N 271-FZ, consumers often face violations of their rights, and sellers – with a clear excess of their powers by the Administration. But the constant change of retail locations, unreasonable collection of additional payments and the sale of counterfeit goods are not the entire list of complaints that citizens make. An open-air retail outlet can cause a lot of inconvenience to residents of nearby houses, which may also be grounds for contacting the supervisory authorities.

What can you complain about?

Despite the fact that specialized institutions systematically conduct raids and scheduled inspections, the activities of markets are not always carried out within the framework of current legislation. As a rule, citizens complain about:

• violation of requirements for equipment of pavilions;
• failure to comply with the procedure for providing retail space;
• unauthorized disposal of garbage and waste, which contributes to the pollution of adjacent areas;
• violation of sanitary standards;
• high noise level, which affects the quality of life of residents of nearby houses;
• sale of prohibited goods;
• unauthorized seizure of adjacent territories;
• lack of response to requests regarding the sale of low-quality products, systematic weighting or shortchanging;
• unauthorized trade in adjacent territories;
• illegal (misdirected) use of the allocated land plot, etc.

You can directly complain to the Administration about regular body kits or shortchanges. In most cases, this is enough to influence a careless seller. In addition, you can complain to the Administration about the creation of uncomfortable trading conditions, non-compliance with the terms of the lease agreement, lack of cleaning and inadequate garbage disposal. It is possible that after receiving such a signal, violations will be eliminated as soon as possible.

The operation of illegal markets is not regulated by relevant legislation. If you identify a point where unauthorized trading is taking place, the police should be called.

What amounts to illegal trade?

Perhaps the most common cases of selling goods on the street are illegal if a citizen does not operate as an individual entrepreneur, organization or self-employed person. Because he does not have the right to sell anything and make a profit from it on a systematic basis. However, these are far from the only circumstances for which they can be held accountable. Illegal trade includes:

• Sales of goods in violation of copyright;
• Sale of prohibited products;
• Trading in the wrong place;
• Lack of licenses for goods;
• Sales of products that contradict or offend moral aspects.

In turn, the degree of punishment will depend on the severity of the violation and may lead to tax, administrative and even criminal liability.

Read: Responsibility for violating trade rules.

It is worth noting that a number of organized events, such as fairs, may have similar characteristics to illegal trade. However, when they are carried out they:

• Placed on trading floors or squares;
• Conducted with the permission of the administration of the region, city or district;
• Present for sale the products of local farmers or craftsmen;
• Complies with established regulations;
• They have a small frequency (as a rule, they are confined to holidays).

Where to go

A buyer, seller or any other person (for example, the owner of another store) whose interests and rights were violated by the actions of the Administration has the right to file a complaint with the supervisory authority. Depending on the situation, the applicant has the right to apply to the following authorities:

1. Management company , which is responsible for organizing trade in the territory entrusted to it (if we are talking about violation of standards when equipping a trading place, the layout of pavilions is not followed, garbage and waste are dumped on the adjacent territory, etc.). It is better to send a written document by mail or personally hand it to the head of the company.
2. Rospotrebnadzor . Any violation of sanitary and epidemiological standards is a reason to contact the territorial Office of Rospotrebnadzor https://www.rospotrebnadzor.ru/region/structure/str_uprav.php. Based on the circumstances and the volume of additional materials, the complaint can be sent by mail, handed over to an authorized employee at a personal meeting, or submitted online https://petition.rospotrebnadzor.ru/petition/oper_auth_need/.
3. Local government (for seizure of territory, misuse of allocated land, etc.). The document can be addressed to a specific official.
4. Prosecutor's office . If there is a suspicion that an administrative offense or a criminal offense is being committed on the territory of the market, you should directly contact the territorial division of the Prosecutor's Office. The document will be accepted only if sufficient evidence is provided. Based on the results of consideration of the stated circumstances, administrative or criminal proceedings may be opened.
5. Court . The last authority where you can turn to protect your rights and interests is a court of general jurisdiction. A claim should be filed even if the management company, the Market Administration and Rospotrebnadzor refused to satisfy the stated requirements. But if we are talking about obtaining financial compensation for harm caused, it is better to involve a lawyer in the process who will help to correctly draw up a claim taking into account the norms of relevant legislation.

Based on the issue, you should first contact the Management Company or the Market Administration.

If you notice illegal trading on the street, where should you go and complain?

If illegal street trading causes harm to citizens or organizations, then it may be necessary to abolish the retail outlet. It is not allowed to exercise arbitrariness according to the laws of the Russian Federation. However, any citizen has the right to report noticed violations to the authorized bodies. In turn, you can file a complaint:

• Contact the local inspector if a violation is noticed near your place of residence;
• To police officers;
• To the city or district administration;
• To the City Property Management Committee;
• To the prosecutor;
• To the tax service.

Read: Complaint to the tax office.

Procedure

To achieve satisfaction of your claims, it is important to collect a sufficient amount of evidence that indicates a violation of the law. It is better to do this before filing a complaint with the market as the conflict situation develops. For this purpose, you can use video footage, expert opinions, photographs, reference documents and any other materials received by the applicant. If the appeal process is based only on unsubstantiated allegations, you should not expect your claims to be satisfied. In this case, the supervisory authority may refuse to consider the complaint, citing a lack of relevant evidence.

To complain about the market, you should follow a certain sequence in your actions. A citizen must:

1. Try to resolve the conflict without the intervention of supervisory authorities. It is better to do this in writing so that the applicant can subsequently confirm that he has already submitted an appeal to the Market Administration or the Management Company. If you immediately submit a statement about the fact of the identified violations to the supervisory authority, it will be returned, citing non-compliance with the appeal procedure.
2. File a complaint or claim in court . In the second case, it is better to use the services of a lawyer who will correctly draw up the document and will participate in the trial as a legal representative. The collected evidence should be submitted along with the complaint. But to avoid loss, it is recommended to transfer their copies, not the originals, to supervisory authorities and the court.
3. Get a response from the supervisory authority . Based on its content, the applicant will be able to understand how to proceed further in the current situation. If an order to eliminate violations is issued, it is important to ensure that it is implemented in full.

Upon receipt of an application, the supervisory authority may conduct an unscheduled market inspection.

When half measures won't help

The Russian budget loses more than 500 billion rubles every year due to the circulation of various types of illegal products, and the volume of the illegal market of non-food products alone is about 5.2 trillion rubles - this is a huge amount completely beyond the control of the state. The list of illegal products is extensive: from counterfeit clothing of well-known brands to smuggled cigarettes, which in some cities of Russia today are sold more than legal ones. In some categories, the share of counterfeit and smuggling is growing rapidly - as, for example, in tobacco products, where 15% of the market is illegal, and in others it already reaches a critical 40%, as in alcohol. It was in these conditions that the Ministry of Industry and Trade of Russia, together with the Russian Association of Retail Experts, brought together on one platform representatives of various areas of trade and representatives of government authorities responsible for its development, as well as foreign participants who were ready to share their experience in solving the problem of the illegal market.

How to file a complaint

Despite the fact that the document can be drawn up in free form, it must contain complete and comprehensive information to consider the circumstances of the incident. The complaint should indicate:

• Details of the supervisory authority to which the appeal is submitted. It can be addressed to a specific official authorized to consider such issues.
• Personal and contact details of the applicant. It is recommended to additionally indicate a telephone number to simplify the communication process.
• The address of the organized outdoor sales point about which the citizen is complaining.
• Circumstances of the incident. It should be reported when the conflict situation arose, who participated in it, and how events developed.
• Was an attempt made to resolve the problem without external interference with the Administration or Management Company. When such requests were submitted, were responses received or did the addressees ignore the demands made. To confirm such information, copies of the responses should be attached to the complaint.
• Links to relevant legislation that have been violated by the market. But if a citizen does not provide such information, he will not be denied acceptance of the claim.
• A clear list of requirements. Depending on the situation, you may be required to verify the stated facts, oblige you to eliminate violations (for example, vacate the occupied territory, use the land for its intended purpose, etc.), and report the results obtained.
• List of applications and additional materials.
• Date, signature.

The collective complaint must contain the signatures of all persons in whose interests it is filed.

How are offenders identified?

People often ask questions about how illegal traders are identified. The search for offenders is carried out by:

Police check

• police officers
• Tax Service employees
• Rospotrebnadzor employees
• caring people

The greatest attention is paid to violators who hide large profits or sell prohibited goods. People who have started selling permitted products that do not require licensing rarely become targets of the Federal Tax Service or the Police.

Offenders are identified by the accounts they maintain and their actions. If a person purchases an expensive item, but is not employed or his income is not enough to purchase this type of product, then the Tax Service will definitely check it. It will be revealed where the funds came from. If a person cannot explain their origin, he will be held accountable.

Question answer

Question: There is a market next to a recently occupied multi-storey building. Every day, regardless of the day of the week, his employees clean the area using a backpack-type blower. Due to the design features of the house and roof, noise in apartments exceeds the limit established by standards. What to do?

Answer: In this case, you should contact the territorial Office of Rospotrebnadzor. It is better for the document to be submitted by a group of residents (i.e. a collective complaint is needed), as this will speed up the process of its consideration. The supervisory authority initiates an administrative investigation, which may result in an order to eliminate the identified violations.

Question: The administration is clearly violating the terms of the lease agreement. During the cold season, it saves on heating, which makes it difficult for sellers to be in the pavilions. As a result, sales and turnover fall. I filed a corresponding complaint with the local government, but they refused to accept it. The refusal was motivated by the fact that I did not try to resolve the conflict with the Administration. How legal are the actions of the local government?

Answer: If we are not talking about committing an administrative or criminal offense, a citizen should really contact the Administration directly. But if she refuses to satisfy the demands put forward or does not provide an answer within the specified period, you can contact the local government body. In this case, as an attachment, the addressee should be given a response or a copy of the previously filed claim.

Question: The retail store is located on the territory of the city market. Trucks carrying goods often drive up to it. But recently the Administration has prohibited the passage, citing the fact that the store is located on private property. And to get a pass, you need to pay a certain amount of money. What is the right thing to do in such a situation?

Answer: If the place of trade is supposedly private property, the Administration should request a document confirming that the object has a special status. Depending on what is provided to the applicant, it will be possible to understand how to proceed to resolve the conflict. You may have to go to the city administration or court to defend your rights.

To trade on the street, you need to register your business. Not everyone needs an online cash register

Before contacting the administration, you must be legalized.

Register a business

Trade generates income on which taxes must be paid. Therefore, before starting work, you need to register with the tax office. The options are as follows:

1. Open an IP. The option with an individual entrepreneur is suitable if you resell goods, rent things or provide services. Also, if you plan, hire a salesperson. An individual entrepreneur pays taxes under a simplified taxation system or buys a patent. Plus, he pays contributions to the Pension Fund for himself and his employees.
2. Open an LLC. Typically, an LLC is opened to conduct business with partners, and the income received is divided. Companies operate on a general or simplified taxation system, pay contributions for employees and maintain accounting records.
3. Register as self-employed through the My Tax mobile application. This is the easiest and fastest way to legalize a business. Self-employed people pay 4-6% of revenue, do not keep accounts and do not submit reports. Suitable only if you sell goods of your own production and do not hire employees.

For business without registration, you are fined in the amount of 500 to 2000 rubles under Part 1 of Art. 14.1 Code of Administrative Offenses of the Russian Federation. If everything is revealed, this fine will be added to the fine for spontaneous trading.

!

Sometimes you can trade at a street fair without registering a business, just as an individual. This point needs to be clarified with the organizers.

Notify Rospotrebnadzor, if necessary.

If you plan to sell retail, prepare food, or your outdoor activity is related to sports, you need to send a notification to Rospotrebnadzor about the start of your activity. This is stated in the Government Decree of July 16, 2009. No. 584.

The notification is taken personally to the territorial department of your city, sent by mail or submitted through the MFC.

If you do not submit a notification, you will be fined up to 20,000 rubles under Art. 19.7.5-1 Code of Administrative Offenses of the Russian Federation.

Notification form

Understand the online cash register

In most cases, street vendors are exempt from online cash registers under Art. 2 54-FZ. You can work without a cash register when:

— trade from trays, carts or in passenger train cars;

- you sell non-food products in outdoor markets, except for goods from this list - there are clothes, rubber and plastic products and sporting goods;

— you sell ice cream or drinks through a kiosk without a sales area;

— you repair shoes or make keys;

- registered as self-employed.

When selling self-produced goods (and providing services) for individual entrepreneurs without employees, there was a deferment until July 1, 2021.

Kontur.OFD, a service for transferring checks to the tax office, will help you connect and register a cash register.

For working without a cash register, you can receive a fine, which will be calculated from unaccounted revenue under clause 2 of Art. 14.5 Code of Administrative Offenses of the Russian Federation.