Tax specialists exposed understated of the VAT by almost 150 million UAH

Specialists of the Tax audit department of Main Directorate of the STS in Dnipropetrovsk region during scheduled audit of the sunflower oil producer exposed registration of operation for production of this and other products under contracts for processing of toll raw materials (sunflower seeds) which have obvious signs of pretense.

Such schemes are often used by vegetable oil producers to avoid liability for introduction of large volumes of oilseeds grown in the shadow sector of economy and most importantly to conceal taxation object and the VAT liabilities in a supply of finished products.

Audit revealed that the suppliers of toll raw materials were not able to grow agricultural products (sunflower seeds) due to the lack of any necessary conditions for this.

There were no land plots and / or land leases, agricultural machinery, purchase of seeds, fertilizers, fuels and lubricants.

At the same time, the purchase of services for storage of sunflower seeds and transportation from any other entities was not declared and there were no mandatory documents for transportation of raw materials and finished products by the road transport. All subjects in the pseudo-supply chains did not own and / or rent land plots, agricultural machinery and did not purchase seeds, fertilizers, or fuel and lubricants. The purchase of services for storage of sunflower seeds, its transportation from other entities was not declared and documents for transportation of raw materials by road were not submitted for verification.

Tax specialists concluded the unreality of operations for production of finished products on toll terms and value added tax liabilities for its free supply outside the terms of transaction in the total amount of 149.5 million UAH.

It should be noted that recent decision of the Supreme Court took into account relevant evidence of the supervisory authority adding the VAT accrual to one of the oil extraction plants in similar circumstances.

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