Reducing the fine for an administrative offense

How to reduce an administrative fine in court or get it canceled

For an administrative violation, a company or entrepreneur may be given a significant fine, but you can try to reduce the fine in court or receive an oral reprimand.

Reduction of administrative fine

This can be done in accordance with Parts 3.2 and 3.3 of Art. 4.1 of the Code of Administrative Offenses of the Russian Federation, according to which the court has the right to reduce the amount of the fine if the minimum fine for a given violation is not less than 100 thousand rubles.

A reduction in the amount of the fine is possible if the company confirms the existence of exceptional circumstances that influenced the violation and its consequences.

When declaring in court to reduce an administrative fine, you must refer to the following circumstances:

• no threat to public relations,
• on the nature of the offense,
• on the primacy of the violation, the absence of aggravating circumstances.
• the financial condition of the company that caused the violation.
• rapid cessation of the violation.
• the threat of bankruptcy or destabilization of the company if the original fine is paid.

If a company seeks to achieve a reduction in the administrative fine, it is necessary to provide evidence for each of the circumstances discussed above.

But it must be borne in mind that if the administrative fine is reduced below the lower limit, the final amount of payment cannot be less than half the minimum payment that is established for this violation in the law (clause 3.3. Article 4.1 of the Code of Administrative Offenses of the Russian Federation).

It does not matter which court is considering the case, arbitration or general jurisdiction. Courts of general jurisdiction follow the same approach to resolving such cases as arbitration courts.

In accordance with Part 3.2 of Article 4.1 of the Code of Administrative Offenses of the Russian Federation, in the presence of exceptional circumstances related to the nature of the administrative offense committed and its consequences, the property and financial status of the legal entity brought to administrative responsibility, a judge, body, official considering cases of administrative offenses or complaints , protests against decisions and (or) decisions in cases of administrative offenses, may impose a punishment in the form of an administrative fine in the amount of less than the minimum amount of the administrative fine provided for by the relevant article or part of the article of Section II of this Code, if the minimum amount of the administrative fine for legal entities is at least one hundred thousand rubles.

Cancellation of administrative fine

In some cases, an administrative fine may be canceled altogether and limited to an oral reprimand addressed to a legal entity.

In accordance with the provisions of Art. 2.9 of the Code of Administrative Offenses of the Russian Federation, if the administrative offense committed is insignificant, the judge, body, official authorized to resolve the case of an administrative offense may release the person who committed the administrative offense from administrative liability and limit himself to an oral remark.

According to the legal position set out in the Determination of the Constitutional Court of the Russian Federation dated 04/09/2003 No. 116-O, the court, taking into account the nature of the offense, the amount of harm caused, the degree of guilt and other mitigating circumstances, guided by the provisions of Article 2.9 of the Code of Administrative Offenses of the Russian Federation, has the right, if the administrative offense committed is insignificant release the person from administrative liability and limit himself to an oral remark.

Paragraph 18 of the said Resolution establishes that a minor offense occurs in the absence of a significant threat to protected social relations.

A significant threat is a danger that implies the possibility of changes in the form of causing losses (damage) to the main, fundamental part of any economic or social relationship.

Thus, the concept of insignificant administrative offense is an evaluative category and is determined by the court in each specific case, taking into account the identified circumstances.

At the same time, the assessment of the insignificance of the act must be correlated with the nature and degree of public danger, the infliction or threat of harm to the individual, society or the state.

As stated in the Resolution of the Constitutional Court of the Russian Federation dated February 25, 2014 No. 4-P, the Constitutional Court of the Russian Federation, the amount of fines in relation to legal entities must meet the criteria of proportionality and ensure the individualization of punishment for legal entities guilty of committing the crime.

Below the lower limit: how to convince the court to reduce the fine

For an administrative violation, companies can be fined several million rubles. If she wants to achieve a reduction in the fine, the reduction must be demanded through the court. How to convince judges to set a fine below the lower limit.

It is possible to reduce the fine for an administrative offense

If a company is brought to administrative responsibility and given a fine of 3 or 5 million rubles, it has a chance to mitigate the punishment. This can be done within the framework of parts 3.2 and 3.3 of Art. 4.1 Code of Administrative Offenses of the Russian Federation. To apply these provisions of the law to reduce the fine, the reduction must be sought through the court.

The judge has the right to reduce the fine under the Code of Administrative Offences, if the minimum fine for this violation is not less than 100 thousand rubles. When the court considers the issue of reducing the fine, the reduction is allowed if the company confirms:

• exceptional circumstances that influenced the violation and its consequences,
• unstable financial situation of the company, etc.

Let us consider in more detail what arguments the courts accept when reducing the fine for an administrative offense.

The fine will be set below the lower limit if the company proves the validity of this

When a company asks the court to reduce an administrative fine, judges will pay attention to:

1. Primary violation.
2. No aggravating circumstances.
3. The financial condition of the company that caused the violation.
4. Quick cessation of the violation.
5. The threat of bankruptcy or destabilization of the company if the initial fine is paid.

The combination of these circumstances may cause the court to determine a fine below the lower limit instead of a large amount. But it must be borne in mind that if the administrative fine is reduced below the lower limit, the final amount of payment cannot be less than half the minimum payment that is established for this violation in the law (clause 3.3. Article 4.1 of the Code of Administrative Offenses of the Russian Federation).

How such arguments work in court can be seen in practical examples.

The reduction of the fine for an administrative offense will be affected by the absence of aggravating circumstances

The court took into account that:

• the company committed a violation for the first time,
• the offense had a low degree of danger to society,
• there was no evidence of intent or dishonesty on the part of the company.

In addition, the court found out how long the company had been doing business and whether there were any loan obligations. Based on the totality of the circumstances, the RF Armed Forces allowed a reduction in the amount of the fine for an administrative offense. The company was charged 50 thousand rubles. instead of 100 thousand rubles (resolution of the Supreme Court of the Russian Federation dated March 29, 2016 in case No. A63-9873/2014).

In another case, the company was able to achieve a reduction in the administrative fine because the violation was not accompanied by aggravating circumstances. The appeal also drew attention to the fact that the violator was brought to justice on this basis for the first time, and the violation itself did not entail serious consequences. In addition, the court noted that the company had fulfilled its contractual obligations. The payment was reduced from 350 to 150 thousand rubles. (resolution of the Supreme Court of the Russian Federation dated 02/08/16 in case No. A12-41988/2014).

In addition, quick elimination of violations will be in favor of the company. For example, when a company does not have permission for any type of activity, but it promptly obtains such permission. This fact will work to reduce the amount of the fine for an administrative offense.

Reducing the administrative fine below the lower limit is possible if the company is in financial difficulties

The company was held accountable for failure to comply with environmental protection measures. However, this violation arose due to financial difficulties. The company provided the court with certificates, accounting data, etc., so that the court could assess its economic instability. This served as mitigating circumstances for reducing the fine (resolution of the Ninth AAS dated June 23, 2016 in case No. A40-220641/15).

It makes sense to draw the court’s attention not only to existing, but also to probable financial difficulties. If the company, after paying the full fine, begins to face bankruptcy or other serious consequences, the court will reduce the administrative fine below the lower limit. For example, if, due to the imposition of a fine, the company will be forced to delay staff salaries, reduce staff, or suspend work. Such consequences do not meet the goals of administrative liability (resolution of the Volga District Administrative District dated April 19, 2017 in case No. A55-542/2014).

It is necessary to present to the court all mitigating circumstances to reduce the fine.

If a company seeks to achieve a reduction in the administrative fine, it is necessary to provide evidence for each of the circumstances discussed above. In this case, it does not matter which court is considering the case: arbitration or general jurisdiction. Courts of general jurisdiction follow the same approach in resolving such cases as arbitration courts (resolution of the Chelyabinsk Regional Court dated December 9, 2016 No. 4a-993/2016).

If the company, due to the large amount of the payment, asks the court to reduce the fine, it will not be possible to achieve a reduction. A large amount in itself is not a reason to ease administrative liability. Setting the amount of payment below the lower limit is possible only if there are the necessary grounds for this (resolution of the Moscow District Court of October 3, 2016 in case No. A41-2872/16).

Petition to reduce the amount of the administrative fine

In _______________________________ Moscow court
Address:__________________________________________

Person involved: _ LLC ______________________
Address:__________________________________________

Petition
to reduce the amount of the administrative fine

The __________________ court is proceeding with case No. ____________ on the complaint of (the person involved) LLC against the resolution No. _________________ on bringing to administrative liability.

According to Part 1 of Art. 25.1 of the Code of the Russian Federation on Administrative Offenses (hereinafter referred to as the Code of Administrative Offenses of the Russian Federation), a person against whom proceedings for an administrative offense are being conducted has the right to submit petitions, including petitions to reduce the fine for an administrative offense. Having exercised its right, the LLC files a petition to reduce the fine for an administrative offense.

The collection of an administrative fine from the LLC in the amount of rubles is significant and disproportionate to the specified offense. The General Director and sole founder of the Limited Liability Company (Involved Person) (OGRN ____________, INN/KPP _______/_______) is his full name.

In accordance with Resolution No. _________ dated " " ______ 201_, the fact of attracting an LLC of a citizen of the Republic of Azerbaijan, full name, responsibility for which is provided for in Part 4 of Art. 18.15 Code of Administrative Offenses of the Russian Federation (hereinafter referred to as an administrative offense).

When imposing an administrative fine, it is necessary to take into account mitigating circumstances, namely that:

1. the cafe in which the LLC operated was not open on the day of the inspection;
2. there were no labor or civil relations between the LLC and the foreign citizen;
3. the administrative offense of the LLC was committed for the first time;

The LLC requests that the court's attention be drawn to the fact that there are no funds in the LLC's current account in the amount of rubles; moreover, the value of the net assets, as well as the profit of the LLC, is significantly less than that established in Part 4 of Art. 18.15 Code of Administrative Offenses of the Russian Federation fine.

The imposition of an administrative fine on the LLC in the amount of rubles resulted in the termination of its activities and bankruptcy. Taking into account mitigating circumstances, as well as in order to maintain the status of a legal entity, the LLC asks the court to reduce the amount of the administrative fine to the amount (sum) of rubles.

As explained in the Resolution of the Constitutional Court of the Russian Federation dated February 25, 2014 No. 4-P, the amount of the administrative fine imposed on legal entities that have committed administrative offenses, the minimum amount of the administrative fine for which is set in the amount of one hundred thousand rubles or more, may be reduced if it the imposition within the limits established by the relevant administrative sanction does not meet the goals of administrative liability and obviously entails an excessive restriction of the rights of a legal entity. A decision to impose an administrative fine on a legal entity below the lowest limit provided for by the relevant administrative sanction is allowed only in exceptional cases.

According to clause 3.2 of Art. 4.1 of the Code of Administrative Offenses of the Russian Federation, in the presence of exceptional circumstances related to the nature of the administrative offense committed and its consequences, the property and financial status of the legal entity brought to administrative responsibility, a judge, body, official considering cases of administrative offenses or complaints, protests against decisions and ( or) decisions in cases of administrative offenses may impose punishment in the form of an administrative fine in the amount of less than the minimum amount of the administrative fine provided for by the relevant article or part of the article of Section II of this Code, if the minimum amount of the administrative fine for legal entities is at least one hundred thousand rubles.

Based on the above, guided by clause 3.2 of Art. 4.1 Code of Administrative Offenses of the Russian Federation,

1. Reduce the administrative fine established by Resolution No. ____________ on bringing to administrative liability dated “____”_________201_, issued by the Deputy Head of the Migration Department of _________________ Russia in Moscow, Police Lieutenant Colonel FULL NAME1 on bringing LLC under Part 4 of Art. 18.15 Code of Administrative Offenses of the Russian Federation, up to the amount (amount) of rubles.

Publications

Reducing the amount of an administrative fine below the lower limit

Alexander Kiselev, Senior Lawyer, Energy Projects Practice

Kiselyov_National Business_Reducing the amount of the administrative fine below the lower limit

Bringing legal entities and individual entrepreneurs to administrative responsibility for committing various offenses has recently become widespread. A significant number of regulatory authorities (regional departments of the Federal Antimonopoly Service, tax and customs control authorities, Rospotrebnadzor, etc.), as well as the lack of qualified lawyers on staff who could prevent possible violations, lead to significant financial losses for businesses associated with the payment of administrative fees. fines.

There are often situations in which the amount of administrative punishment established by the state is burdensome for the violator and does not correlate with the circumstances of the violation.

Considering a similar situation, the Constitutional Court of the Russian Federation, in Resolution No. 4-P dated February 25, 2014, concluded that in some cases the minimum amounts of administrative fines established in the Code of Administrative Offenses of the Russian Federation, provided for individual violations of the provisions of the law, significantly exceed the negative consequences for society, the state as a whole and individuals.

In accordance with this Resolution of the Constitutional Court of the Russian Federation, amendments have been made to the Code of Administrative Offenses of the Russian Federation, allowing in exceptional cases to reduce the amount of an administrative fine below the lowest limit.

Thus, according to Part 3.2 of Article 4.1 of the Code of Administrative Offenses of the Russian Federation, in the presence of exceptional circumstances related to the nature of the administrative offense committed and its consequences, the property and financial status of the legal entity brought to administrative responsibility, a judge, body, official considering cases of administrative offenses or complaints, protests against resolutions and (or) decisions in cases of administrative offenses may impose a penalty in the form of an administrative fine in an amount less than the minimum amount of the administrative fine provided for by the relevant article or part of the article of Section II of this Code, if the minimum amount of the administrative fine for legal entities is at least one hundred thousand rubles .

Reducing the amount assigned by an administrative body is the right of the court or official. It should be noted that the amount of an administrative fine, even in the presence of exceptional circumstances, cannot be less than half of the minimum amount.

In practice, exceptional circumstances that are taken into account by both administrative authorities and courts are:

1) the difficult financial situation of the person brought to administrative responsibility - pre-bankruptcy, lack of profit, sharp decline in revenue;

2) providing assistance to the administrative body in establishing the circumstances of the case - providing explanations, appearance of representatives;

3) voluntary compliance with instructions or voluntary elimination of violations;

4) commission of an offense for the first time, unintentional nature of the actions;

5) socially oriented activities of a person brought to administrative responsibility - the provision of public services, city-forming enterprises, supplying the population with essential goods.

This list is not exhaustive, since exceptional circumstances are established by the court, administrative body and official, taking into account the specific circumstances of the case.

In conclusion, I would like to note that the changes made to the Code of Administrative Offenses of the Russian Federation will lead to greater individualization of the imposed punishment, and business has received a really working tool to reduce the burden of paying administrative fines

How to reduce the amount of an administrative fine?

In most cases, bringing to administrative liability is associated with the need to transfer a certain amount of a fine within a limited period. Violators, which also include vehicle owners fined for violating traffic rules, often wonder how to reduce the fine for an administrative offense. Such an action is allowed under certain circumstances and consists of paying a fine within a certain period or filing a petition.

When can a reduction in the amount of the fine be considered?

Circumstances that may reduce the fine include:

• Repentance of the guilty person;
• Termination of the offense voluntarily;
• Voluntary reporting of an offense;
• Providing assistance to law enforcement agencies during the investigation;
• Elimination of negative consequences that resulted from the offense;
• Compensation for damage caused on a voluntary basis;
• Committing an offense in a state of passion or under a combination of certain circumstances that indirectly provoked the offense;
• A situation in which the culprit is a pregnant woman;
• The difficult financial situation of the perpetrator, which prevents the timely payment of the fine;
• The difficult financial situation of the enterprise, which also prevents the payment of the fine within the period specified by the order. In such a situation, circumstances may be considered in which the transfer of funds will limit the ability to repay current payments in relation to citizens. For example, if it is not possible to pay wages to employees;
• The circumstances specified in Article 4.1 of the Code of Administrative Offenses (parts 2.2, 3 and 3.2). In particular, for a minor offense that did not cause serious damage to other individuals or organizations, the issued fine may be replaced by a warning;
• Other reasons that may be separately reflected in the articles of the Administrative Code.

Situations that do not fall within the definition of articles of the Code of Administrative Offenses are considered separately. In them, at the discretion of judges or other officials, a decision may be made to reduce the existing fine.

Reducing fines for traffic violators

For those motorists whose prosecution arose on the basis of a violation of traffic rules, the possibility of automatically reducing the amount of the fine has been determined. This is possible if the violation is not serious and does not cause significant damage. If the required amount is transferred within 20 days from the date of the decision, the driver has the opportunity to pay only half of the imposed fine.

Legal basis

Legal grounds for reducing the amount of a fine may be various reasons provided by the guilty individuals and organizations. At the same time, it is not at all necessary that a certain situation be described by any of the existing articles of the Code of Administrative Offenses - such a condition was actually abolished by a decision of the Constitutional Court issued in 2014.

The aggregate grounds that make it possible to consider a case to reduce the fine may be:

• The presence of so-called mitigating circumstances that are related to the specifics of the offense committed, the financial condition of the person or organization, as well as the personal characteristics of the citizen;
• The amount of the fine is a certain minimum value. This permissible threshold is determined by 100 thousand rubles for legal entities, 50 thousand rubles for officials and 10 thousand rubles for ordinary citizens.

The important point is that to file a petition, the perpetrator does not have to wait for the court to make a decision - the start of the process is quite sufficient. If a decision has already been made regarding the citizen, then a complaint should be filed.

Drawing up a petition

When sending an application, it is necessary to comply with the established form of its formation. The document must contain the following information:

• Name of the authority where the document is sent;
• Name of the organization or full name of the citizen who submits the petition;
• Address of a legal entity or place of registration of a citizen. If available, additionally reflect the email address and telephone number;
• Information about the case under consideration;
• A list of those circumstances that give the right to consider the issue of reducing the amount of the fine. Moreover, the guilty person may not be limited in their number. By providing several objective reasons, a citizen or representative of a legal entity increases the chances of making a positive decision in their favor;
• A list of attached documents that may indicate the existence of grounds for reducing the imposed fine.

Alternative methods

In addition to the possibility of reducing the fine, citizens can take advantage of the following opportunities:

• Submit a request to defer the fine or pay it in installments. In such a situation, the maximum possible deferment period will be only 3 months. Extension of the period is not provided for by the articles of the Code of Administrative Offences;
• Replacing an existing fine with a different type of punishment. For example, this could be a warning, etc.

So, the possibility of reducing the amount of the fine may occur automatically if the driver violated traffic rules or if a petition is drawn up and submitted. In the second situation, the perpetrator must understand that in order to satisfy such a request, he must provide compelling circumstances.