As part of the systematic investigation of criminal schemes for embezzlement of budget funds, detectives of the Bureau of Economic Security of Ukraine exposed a company that, together with a group of enterprises, was involved in a criminal scheme and is actually controlled by a well- known Lviv businessman. Using such a scheme, the company caused losses to the state, in the form of illegal budget VAT compensation of almost UAH 35.4 million.

According to the results of searches of the office premises of the company that received an illegal refund of value added tax, more than 21 million UAH, 95 thousand euros, and 10 thousand US dollars in cash were seized in total equivalent to more than 25 million UAH. Also, financial and economic documents and media confirming the illegal activity of the company were seized.

It was established that during 2021-2022, officials of the mentioned company bought various food products (cereals, pasta, coffee, canned goods, tea, oil, sweets, etc.) from several private enterprises. In the future, the goods were sold to business entities of various forms of ownership, as well as through a chain of grocery stores in the territory of the city of Lviv, owned by a well- known Lviv businessman. At the same time, the sale of the mentioned goods was not reflected in the tax returns. In this way, the company artificially created the allegedly existing remains of the specified goods in warehouses, which made it possible to enter false information into official documents and to submit applications for the return of the amounts of the budget VAT refund.

"One of the priorities of the Security Service during martial law is to help fill the budget by preventing economic crimes and ending the existence of shady schemes related to tax minimisation, illegal VAT refunds, violations in state procurement. ESBU detectives promptly detect facts of illegal VAT reimbursement to fictitious enterprises and react accordingly, within the limits of their powers. Illegal VAT reimbursement is actually embezzlement of state funds. No one has the moral right to intend to appropriate budget funds. They should be directed to the financing of the Armed Forces of Ukraine and the restoration of communities," said the Director of the ESBU , Vadym Melnyk.

Pre-trial investigation of criminal proceedings on the grounds of the commission of an offence provided for in Part 5 of Art. 191 of the Criminal Code of Ukraine (appropriation, embezzlement of property or taking possession of it by abuse of official position) is carried out by detectives of the main unit of detectives of the Security Intelligence Service under the procedural guidance of prosecutors of the Prosecutor General's Office.

It will be recalled that the director of the company was recently notified of suspicion of illegal VAT reimbursement in the amount of UAH 40 million.

More details: https://esbu.gov.ua/news/direktoru-tovaristva-povidomleno-pro-pidozru-za-faktom- nezakonnogo-vidshkoduvannya-pdv-v-rozmiri-40-mln-grn