Titov, in a report to Putin, suggested linking fines for small businesses to revenue

The Commissioner for the Protection of the Rights of Entrepreneurs Boris Titov proposed to tie the amount of fines for small and medium-sized businesses to the company’s revenue. The initiative is contained in the special report “SMEs / Postcovid. Time for systemic changes ”, which was prepared as part of the annual report to President Vladimir Putin.

Mr. Titov proposed to abolish fines for the first offense committed by a business within one year. In his opinion, this can be punished with a warning. “The very scale of fines was proposed to be differentiated by placing the amount of the fine depending on the category of business in terms of revenue – micro, small, medium-sized enterprises,” the report says (quoted by TASS).

The report also contains other initiatives: a ban on the simultaneous involvement of a legal entity and its head for the same offense, the creation of an institution of mediation in business disputes with government agencies, the introduction of liability for unjustified blocking of accounts by tax authorities. In addition, Mr. Titov proposes to abolish the tax on dividends for SMEs in the form of LLCs with one founder, or founders from the same family. He also proposes to abolish taxes for activities that are related to improving the environment.

In an annual report to the president, the business ombudsman praised the government’s deregulation against the backdrop of COVID-19 – both the number of inspections and the amount of fines decreased. The moratorium on inspections alone reduced the amount of fines collected from businesses sixfold, by 200 billion rubles.

For more information about the checks, see the Kommersant article “Moratorium for two hundred billion rubles.”