ESBU detectives in the Chernivtsi region uncover a UAH 8.8 million VAT evasion scheme in infrastructure projects

 Detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Chernivtsi region have exposed the head of a contracting company for evading Value Added Tax, resulting in more than UAH 8.8 million in losses to the state budget.

The investigation revealed that the company had won a public tender for construction work as part of an infrastructure project. The project was commissioned by the Department of Capital Construction of the Chernivtsi Regional State Administration.

Throughout 2024, the company generated revenue from completed projects; however, the company’s head failed to report the actual income in tax filings, entering false data into VAT declarations.

These actions resulted in a total deficit of over UAH 8.8 million in Value Added Tax payments to the state budget.

The head of the company has been officially notified of suspicion of committing criminal offenses under Part 2 of Article 212 of the Criminal Code of Ukraine.

The pre-trial investigation was launched following an analytical review conducted by experts from the Economic Security Bureau of Ukraine. Procedural oversight in the case is being provided by the Chernivtsi Regional Prosecutor's Office.