Ruslan Kravchenko: State Tax Service has exposed a large-scale VAT evasion scheme totaling 286 million UAH in the two well-known electronics chains

Employees of the State Tax Service of Ukraine have exposed scheme of "business fragmentation" in the two well-known electronics chains, which led to the VAT evasion of more than 286 million UAH. Materials regarding all violations have already been transferred to the Economic Security Bureau of Ukraine. This was informed by Head of the State Tax Service of Ukraine Ruslan Kravchenko on his Facebook page.

"These two retail chains that sell APPLE brand equipment have more than 160 stores across the country. State Tax Service’s employees discovered massive sales without the RRO/PRRO use, as well as lack of product accounting and documents regarding origin of equipment" – he noted.

Over the weekend alone, as a part of almost 150 control purchases, including in these chains, tax officials discovered 22 cases of issuing non-fiscal settlement documents – essentially fake pieces of paper that only imitate checks. 

Sales timing showed that constant presence of tax officials stimulated growth of sales in stores by several times.

As a result of more than 400 such audits, taxpayers were fined with more than 85 million UAH.

Ruslan Kravchenko emphasized that the State Tax Service also transferred to the law enforcement agencies facts of artificial division of sales by these networks: legal entities involved up to 300 related individuals-entrepreneurs on the simplified system. 170 entrepreneurs involved in these manipulations have already been identified. Their total income is 1.72 billion UAH.

Due to audits conducted by the State Tax Service, these networks have now ceased operations through the single tax payers and operate in the form of limited liability companies that are on the general taxation system and are the VAT payers. Their sales revenues have increased by more than 10 times.

"The beginning has been made – other tax "evaders" are the next in line. We continue to expose shady tax evasion schemes in the electronics and household appliances market. Tax officials are currently actively monitoring sector. I am confident in prompt response of the law enforcement officers. We also count on the support of consumers themselves – pay attention to the packaging originality, provision of a guarantee and checks. I ask you to inform the State Tax Service about all sales of electronics and household appliances without fiscal cash checks" – emphasized Ruslan Kravchenko.