Fictitious services and over UAH 12.4 million in unpaid taxes: ESBU notified a city council deputy of suspicion

 Over UAH 12.4 million in value-added tax did not enter the state budget as a result of the actions of a current deputy of one of the city councils in Zhytomyr Oblast. Based on the gathered evidence, detectives of the Main Detectives Unit of the ESBU have notified him of suspicion of tax evasion on an especially large scale.

The investigation established that the suspect, while holding the position of director of a paper industry enterprise, organized a tax evasion scheme. To reduce tax liabilities, the reporting reflected transactions for the purchase of services that were actually not provided.

As established by ESBU detectives, the counterparty was an enterprise with signs of fictitiousness. Its director and founder have already been convicted for entering false information into documents submitted for the state registration of a legal entity.

As a result of the implementation of the scheme, the state budget failed to receive over UAH 12.4 million.

The deputy was notified of suspicion of committing a criminal offense provided for by Part 3 of Article 212 of the Criminal Code of Ukraine. He is accused of intentional tax evasion on an especially large scale, committed by prior conspiracy by a group of persons.

The pretrial investigation is ongoing. Procedural guidance is provided by the Office of the Prosecutor General.