Tax minimization through non-commodity transactions: ESBU in Kyiv ensures 6.7 million UAH in loss recovery

 ESBU detectives in Kyiv have completed a pre-trial investigation regarding the director of a capital-based company specializing in the technical maintenance of construction sites and facilities. He is charged with intentional tax evasion amounting to over 6.7 million UAH. The damages caused to the state budget have been fully recovered.

The investigation revealed that over a two-year period, the head of the enterprise, which performed construction and installation works as well as security system maintenance, orchestrated a tax minimization scheme through so-called "non-commodity transactions."

These refer to fictitious agreements executed only on paper without the actual supply of goods or provision of services. Such "operations" are used to create an artificial VAT tax credit or inflate business expenses, allowing the company to reduce the amount of taxes owed.

In fact, the funds were transferred for allegedly completed works that were never actually performed.

As a result, the enterprise evaded taxes totaling UAH 6.7 million.

The director was notified of suspicion under Article 212, Part 2 of the Criminal Code of Ukraine (tax evasion on a large scale). The damages caused to the state budget have been reimbursed in full.

A motion has been filed with the court to release the individual from criminal liability in accordance with Part 4 of Article 212 of the Criminal Code of Ukraine. Prosecutors of the Kyiv City Prosecutor's Office provided procedural guidance in the case.