Scheme of tax evasion worth over UAH 240 million from state road contracts exposed
Kyiv • UNN
Prosecutors exposed a scheme of VAT evasion in the road construction sector, where five enterprises arranged fictitious purchases of materials worth over UAH 1.1 billion.
Prosecutors together with law enforcement officers exposed a scheme of VAT evasion in the road construction sector. The amount of unpaid taxes is 244 million hryvnias, Prosecutor General Ruslan Kravchenko reported, writes UNN.
"When a company works with state funds, it must honestly pay taxes to the state. This is a basic rule. And no schemes or 'tax optimizations' cancel it.
Prosecutors together with law enforcement officers exposed a scheme of VAT evasion in the road construction sector.
According to the investigation, five enterprises associated with the beneficiary of a large road construction company, during 2020-2023, allegedly arranged the purchase of bitumen, crushed stone, and other construction materials worth over 1.1 billion hryvnias. In fact, these deliveries did not occur," Kravchenko reported.
According to the Prosecutor General, on paper, suppliers sold materials for road repairs. In reality, they were engaged in completely different activities and traded food products, footwear, tires, and fittings.
It was on the basis of such fictitious transactions that a tax credit was formed, which allowed significantly reducing tax liabilities. As a result, the budget lost over 243.8 million hryvnias
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Additionally, it was established that these same enterprises conducted transactions with the main road construction company worth over 4.3 billion hryvnias, mixing real deliveries with 'paper' ones. Thus, fictitious documents were embedded into real economic circulation and created the appearance of legality.
"The fact of intentional tax evasion has been confirmed by tax audits and conclusions of forensic examinations. One of the enterprise managers has already been notified of suspicion in absentia. A search was conducted at his place of residence. Two other suspects are abroad. We are taking measures to bring them to justice," Kravchenko reported.
The Prosecutor General emphasized that he has repeatedly said at meetings with business: the prosecutor's office is not an enemy of business. We are interested in entrepreneurs working, creating jobs, and developing the economy.
"But there is a fundamental limit.
If a company receives billion-dollar state contracts and then, through fictitious transactions, removes hundreds of millions of hryvnias from taxation, then this is no longer business. This is deception of the state and all taxpayers. Almost 244 million hryvnias are funds for defense, security, hospitals, schools, and the country's recovery. I am convinced: such actions must be held accountable regardless of the scale of business, positions, or connections," the Prosecutor General emphasized.