According to materials from the ESBU, a construction company director in Bukovina will be tried for evading the payment of UAH 5.5 million in VAT

 Detectives from the Territorial Office of the Economic Security Bureau of Ukraine in the Chernivtsi region have completed the pre-trial investigation regarding the director of a cooperative who evaded value-added tax during the construction and sale of a residential complex.

A pre-trial investigation was initiated based on an analytical product compiled by ESBU specialists.

The investigation established that the volume of operations during the construction and sale of housing obligated the enterprise to register as a VAT payer. Concurrently, payments for the apartments were conducted in cash to conceal the actual sales volume. After construction completion, the ownership rights to the housing were immediately registered to individuals without reflecting the initial sale operations in the tax records. This allowed for the avoidance of UAH 5.5 million in accrued VAT payments.

The indictment against the cooperative director under Part 1 of Article 212 of the Criminal Code of Ukraine (tax evasion) has been sent to court.

Procedural guidance was provided by the prosecutors of the Chernivtsi Regional Prosecutor's Office.