State Tax Service exposed tax evasion of a chain of fishing equipment stores

State Tax exposed a scheme concealing income in a chain of fishing tackle stores. During audits, it was revealed that entrepreneurs used special software to simulate fiscalization and avoid taxation, which led to financial violations.

Tax officials from one region conducted four audits at stores of a popular retail chain. Although the stores were owned by different entrepreneurs, they operated under a single brand.

Before the audits began, the State Tax Service’s auditors carried out control purchases, during which they purchased certificates for cash. 

Sellers did not use official registrars of settlement operations and did not provide fiscal cash checks.

Establishments used special software that simulated operation of software registrars of settlement operations and printed fake purchase documents, which allowed them to hide real proceeds.

Purchasing products using previously purchased certificates, fiscal cash checks were again not issued, and transactions were not recorded in the official reporting.

Based on the audit results, the State Tax Service revealed violations of requirements of the Law of Ukraine №265/95-VR as of 06.07.1995, for which, based on Article 17 of the Law, punitive (financial sanctions) were applied

Reminder: usage of illegal software to evade taxes is a serious violation that can lead not only to fines but also to the criminal liability.