Detectives of the Territorial Department of the Economic Security Bureau in Poltava region exposed the head of an enterprise in Kharkiv region who tried to misappropriate public funds. The company specializes in grain processing and production of bakery products.

The pre-trial investigation revealed that the director had repeatedly indicated in the tax return the amount of value added tax to be refunded from the budget. Such actions led to an overstatement of the amount of budgetary refund for the next reporting period. The company sold its finished products for cash and without reflecting them in its tax returns.

Detectives of the Bureau searched the company's office premises. They seized almost UAH 2.2 million in cash, 5 seals of controlled companies, documents and draft records. The seized property was seized.

The company's director was served a notice of suspicion of attempted embezzlement by abuse of office. The pre-trial investigation in the criminal proceedings over violation of Part 2 Art. 15, Part 5 Art. 191 of the Criminal Code of Ukraine (misappropriation, embezzlement or seizure of property through abuse of office) was conducted by detectives of the Territorial Department ESBU in Poltava region under the supervision of the Kharkiv region prosecutor's office.

For reference. A VAT refund is a compensation by the state for the amount of value added tax paid on the cost of purchased raw materials, goods, works and services. All VAT payers both legal entities and individual entrepreneurs are entitled to it if the amount of tax credit in the declaration exceeds the tax liability (the so-called "minus").