Fictitious ingredient costs: ESBU exposes nearly UAH 5 million in tax evasion

 An entrepreneur involved in the sale of bakery products has evaded nearly UAH 5 million in taxes. The violation was uncovered by employees of the Territorial Office of the Economic Security Bureau of Ukraine in the Lviv region.

Criminal proceedings were initiated based on an analytical product from ESBU. During an analysis of the entrepreneur's financial and economic activities, ESBU analysts identified risks of understating tax liabilities. These facts were subsequently confirmed by detectives.

The investigation established that throughout 2023–2024, the suspect documented the purchase of ingredients for bakery production that were never actually delivered. In this manner, he artificially inflated expenses and minimized tax payments.

As a result of these actions, Value Added Tax, Personal Income Tax (PIT), and the Military Tax were understated. The total amount of damage caused to the state budget stands at nearly UAH 5 million.

The entrepreneur has been served a notice of suspicion under Part 1 of the Act. 212 (intentional tax evasion) of the Criminal Code of Ukraine.

During the pre-trial investigation, the suspect fully reimbursed the damages caused to the state. Consequently, a motion has been submitted to the court to release him from criminal liability in accordance with Part 4 of the Art. 212 of the Criminal Code of Ukraine.

Procedural oversight is being carried out by the Lviv Regional Prosecutor's Office.