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Employees May Receive Prison Sentences For “Gray Wages”


Employees may possibly get sentenced to prison for accepting so-called “gray” or unofficial wages, while employers may get off with only a fine. Beginning last year, tax inspectors have been preparing to call both employers and employees to salary commissions set up to deal with such matters. In such cases where an employee admits to receiving “gray” money, he may be charged with colluding with the employer and may face one to three years in a labor colony depending on how much “gray” money he accepted, the news site “Vesti.ru” reported.

Vitaly Kolesnikov, the head of Russia’s Federal Tax Service Information Technology Department advises workers what to do if they receive money under-the-table:

“First of all, accepting this money is not beneficial to the employee.  All of your pension accruals, use of banking services, communications with financial agencies, your securities, your trips abroad all leave a paper trail. When you need to fill out your income tax forms to prove that you were capable of paying for these trips, the odds are not going to be in your favor. That is why I strongly advise you to request and make arrangements with your employer to receive your entire salary legitimately,” asserted Kolesnikov.

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