Undeclared income cost the budget over UAH 13 million: Economic Security Bureau of Ukraine completes investigation in the Lviv region

 The state budget missed out on over UAH 13 million in corporate income tax due to a company's undeclared funds. The damages caused to the state have already been repaid in full. Detectives of the Territorial Office of the Economic Security Bureau of Ukraine in the Lviv region have completed the pretrial investigation in the criminal proceedings against the company's director.

The investigation established that the enterprise had received interest-free repayable financial assistance—essentially, funds for temporary use without interest accrual.

According to legislation, if such funds are not repaid within the specified period, they are considered company income and must be reflected in accounting and tax reporting, and corporate income tax must be paid on the income received.

However, the head of the company failed to enter the received funds into the accounting and tax records. As a result, the enterprise failed to declare the income and evaded paying over UAH 13 million in corporate income tax.

During the pretrial investigation, the damages caused to the state were repaid in full. Consequently, the court released the suspect from criminal liability upon full reimbursement of the damages caused to the state.

The director's actions were qualified under Part 3 of Article 212 of the Criminal Code of Ukraine (intentional tax evasion committed by an enterprise official, which resulted in the actual non-receipt of funds into the budget in especially large amounts).

Procedural guidance in the case was provided by prosecutors of the Lviv Regional Prosecutor's Office.