Formation of fictitious tax credit totaling 300 million UAH was prevented in Zhytomyr region

Specialists of Main Directorate of the STS in Zhytomyr region prevented the next fact of a risky tax credit distribution.

The main task of two enterprises (type of activity is the wholesale of wood, construction materials and sanitary equipment) was to create and further implement fictitious tax credit.

Scheme’s essence is that these enterprises purchased a hard coal mixture with further plan of selling it to Ukrainian power plants. However, this type of products was obtained by the so-called “scrolls” – according to available supplier’s documents, the specified products were received by him as food, which was sold to these companies in the form of a coal mixture.

Not having a sufficient number of employees, not attracting a sufficient number of third-party labor resources, enterprises purchased a large number of products / works that have different characteristics and require special conditions for their transportation and storage. However, their volumes and properties do not correspond to the logistical and technological capabilities of these enterprises.

As follows, volume of artificially sold products, works / services indicates the physical impossibility of carrying out such volume of economic activity without the adequacy of ancillary services and appropriate number of employees.

Given the content and technological specifics of operations for the probable purchase and sale of a large number of different products, provision of a large number of different services and works, it is impossible to perform formalized business operations.

Through such actions, the “dealers” planned to artificially increase the electricity of price for population and private sector of Ukraine.

Total amount of the scheme is 300 million UAH.

Tax risk analysis department of Main Directorate of the STS in Zhytomyr region terminated the possibility of artificial formation of tax credit of the specified enterprises and blocked scheme by entering data of  the specified enterprises according to Paragraph 8 of Criteria of the Resolution of KMU №1165 as of 11.12.2019.

Materials regarding illegal activities were sent to the law enforcement agencies for further identification of individuals involved in this scheme and bringing the perpetrators to justice.