Problems of Judicial Practice of Turning Property into State Income in the Framework of Combating Corruption

As a result of the accession and implementation of the UN Convention against Corruption of October 31, 2003, a norm appeared providing for a form of liability for violation of anti-corruption legislation in the form of conversion of property to state income (clause 8, clause 2, Article 235 of the Civil Code of the Russian Federation). In connection with Article 17 of Federal Law No. 230 “On control over the compliance of expenses of persons holding Public Positions and other persons with their incomes”, it has an anti-corruption purpose and is subject to application in a special procedure of claim proceedings. The prosecutor received the right to appeal to the court on the basis of paragraph 2 of Article 235 of the Civil Code of the Russian Federation — paragraph 8 with a statement of claim for applying to the income of the Russian Federation property in respect of which, in accordance with the legislation of the Russian Federation on combating corruption, evidence of its acquisition for legitimate income by a court decision is not provided. Civil lawsuits against individuals and legal entities are multiplying, the result of which is the conversion of property acquired decades ago into state income. The statute of limitations does not apply. Income received by officials from prohibited business activities, or property hidden from declaration, are qualified as subject to seizure, although this does not follow from the law. The pledge of the seized property is terminated, although there are also no grounds for this in the law. The article analyzes aspects of the application of the law. In addition, the author proves that challenging an official’s transactions to invalidate them does not follow from the law and does not meet the goals and objectives of anti-corruption legislation.