Specialists of the State Tax Service uncovered significant violations in one of the popular chains of kid’s toy stores

Specialists of the State Tax Service uncovered significant violations in one of the popular chains of kid’s toy stores that operate in Kyiv and region. Tax evasion schemes are standard: pseudo-checks, unregistered employees and business fragmentation.  

Specialists of the State Tax Service carried out control measures using a risk-based approach and taking into account decision of the National Security and Defense Council of Ukraine on restrictions on conducting actual audits. 

The chain’s activities were organized through individuals-entrepreneurs – single tax payers. Despite the fact that all retail outlets had registered software registrars of settlement operations, buyers actually received documents that only imitated real fiscal checks.

Tax authorities also recorded a number of other violations:

- employment use without proper registration of employment relations;

- settlements without fiscal checks;

- lack of documents confirming inventory accounting. 

The network will have to pay a fine of almost 6 million UAH.

All actual audits were accompanied by timing. In those stores where it was carried out, the average daily turnover increased to 200%.

Audit results confirm importance of further applying a risk-based approach that allows identifying violators and protecting fair competition in the market.

If you are aware of such violations, please inform the Tax Service via the “TAX Control” service. Widget is located in the upper right corner of the official website of the State Tax Service.