Tax evasion scheme by forming fictitious tax credit was exposed

Employees of the Anti-money laundering department of Main Directorate of the STS in Vinnytsia region exposed tax evasion scheme committed by the business entity by formation of fictitious tax credit for enterprises of the real sector of economy in order to minimize the VAT payment to the budget.

It was established that the business entity, in order to cover up illegal activities and avoid blocking tax invoices in the Unified register of tax invoices, declared availability of production facilities in tax reporting and manpower required to carry out the declared activity.

It was documented that the lessors of production resources have not submitted tax reporting since the moment of registration and have fictitiousness signs.

Total volume of allegedly conducted supply of products and materials to counterparties-buyers amounted to more than 120 million UAH. State budget’s losses in the form of understatement of the value added tax by counterparties – buyers amounted to more than 20 million UAH.

Materials are being investigated by the law enforcement agency for accession within the criminal proceeding under Part 2 Article 364, Part 3 Article 212, Part 3 Article 209 and Part 2 Article 205-1 of the Criminal Code of Ukraine.

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