The Security Services of Ukraine, along with the BEB, has exposed a large-scale embezzlement scheme of budget money. The management of the Key Department of the State Tax Service in the Lviv region is also a part in the arrangement.
Officials have organized illicit refunds of value added tax (VAT) to local businesses. This should have permitted them to “withdraw” more than UAH 40 million from the budget of the state.
However, Ukrainian law enforcement officers promptly restricted the scheme & identified its key participants.
As per the investigation, the officials that are involved in the illicit activity affiliated commercial structures part in the importation of consumer goods & their sale.
Notably, Merchants have sold wholesale batches of foreign products for cash, whereas in the tax reporting it was highlighted that they failed to sell the goods & it was allegedly stored in warehouses.
Then these entrepreneurs have further formed an application for a budget VAT refund. The main reason given was that they paid the approximate tax upon importation, but they were allegedly not able to sell these goods, so they are directly entitled to compensation under the law.
However, during the inspection of relevant documents, tax officials “turned a blind eye” to the goods absence & even the warehouses where the products were allegedly stored.
Following receiving budget money in the accounts of the enterprises, their representatives have moved to withdraw the funds into the shadows & converted them into cash via controlled companies.
As per the materials of the SBU, three(3) high-ranking officials of the regional administration of the State Tax Service were informed of suspicion under Part 2 of Article 364 (abuse of power or official position) of the Ukrainian Criminal Code.
The issue of choosing a preventive step is being resolved.
SBU and Economic Security Bureau employees conducted the investigation under the procedural guidance of the Prosecutor General’s Office.