The ESBU in Bukovyna exposed a food supplier’s business-splitting scheme: UAH 5.8 million reimbursed

 Detectives of the Territorial Office of the ESBU in the Chernivtsi region have ensured the reimbursement of UAH 5.8 million in Value Added Tax (VAT) to the state budget by a food supplier. The company supplied meat, dairy, and fish products to wholesale and retail outlets, manufacturing facilities, and catering establishments across the Chernivtsi, Ivano-Frankivsk, and Khmelnytskyi regions.

The enterprise has now ceased using the business-splitting scheme and operates as a single business entity under the general taxation system. Individuals previously registered as individual entrepreneurs (FOPs) have been officially employed.

During the pre-trial investigation, it was established that the company's director utilized a business-splitting scheme to minimize tax liabilities.

Specifically, together with the company's officials, he involved over 20 individual entrepreneurs and conducted business operations on their behalf, effectively controlling financial transactions and the turnover of both cash and non-cash funds. Tax reports were submitted from a single IP address, indicating centralized management of the scheme.

The suspect has been notified of suspicion of committing a criminal offense under Article 212, Part 1, of the Criminal Code of Ukraine (tax evasion).

During the pre-trial investigation, the damages caused to the state were reimbursed in full. A motion to release the individual from criminal liability has been submitted to the court.

Procedural oversight—Chernivtsi Regional Prosecutor's Office.