Over UAH 1.2 billion in financial obligations: court sentences state enterprise director based on ESBU evidence

 Detectives of the Main Detective Unit of the Economic Security Bureau of Ukraine have uncovered a large-scale tax evasion scheme at a state-owned enterprise. The director of a distillery failed to pay UAH 622.6 million in excise tax to the budget. Additionally, the court upheld a civil lawsuit filed by the prosecutor, ordering the repayment of another UAH 622.6 million in damages to the state.

The pretrial investigation established that the acting director of the enterprise organized a scheme to minimize tax liabilities.

He unlawfully applied excise tax exemptions during operations involving denatured ethyl alcohol. This involved the intra-enterprise transfer of alcohol for industrial processing.

The official was aware that the enterprise was not included in the electronic register of entities authorized to use alcohol under preferential terms for the production of chemical and technical products, perfumes, cosmetics, and other goods. Despite this, he deliberately violated the requirements of tax legislation.

As a result of these actions, a total of UAH 622.6 million in excise tax remained unpaid to the state budget throughout 2022-2023.

During the trial, the director of the state enterprise did not plead guilty. However, the court concluded that the evidence collected was sufficient to prove his guilt and issue a conviction.

The court reviewed the case materials and found the enterprise director guilty of a criminal offense under Part 3 of Article 212 of the Criminal Code of Ukraine (tax evasion on an especially large scale).

He was sentenced to a fine equal to the damages caused to the state—UAH 622.6 million—along with a 3-year disqualification from holding positions involving organizational, supervisory, or administrative functions, and the confiscation of all his personal property.

Additionally, the court satisfied a civil lawsuit filed by the prosecutor in the interests of the state, represented by the State Tax Service of Ukraine, seeking full restitution of damages.

The verdict may be appealed within 30 days of its announcement, in accordance with Article 395 of the Criminal Procedure Code of Ukraine.