Tax evasion scheme during the sale of food products of unknown origin for 35 million UAH was exposed

Specialists of Main Directorate of the STS in Khmelnytskyi region, in the course of documentary audit of the limited liability company, exposed extensive shadow tax evasion scheme, which consisted in the sale of foreign products to end consumers under the guise of a well-known brand.

Food products were sold through a network of stores in a number of regions of Ukraine with involvement of 35 controlled individuals – entrepreneurs.

Tax specialists collected evidence that entrepreneurs did not carry out independent economic activities, did not have employees and were ordinary employees of the enterprise and other business entities. Also during the audit, it was established that individuals – entrepreneurs did not keep primary records of activity and did not provide any supporting documents. Legality of importing products to the customs territory of Ukraine was not documented.

Based on the tax audit results, it was concluded that income of entrepreneurs is in fact income of a legal entity that has not been subject to income and value added tax. According to the audit results, the company was fined with more than 35 million UAH.

Audit materials were handed over to the law enforcement agencies for a decision.

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