1.7 billion UAH of possible budget losses: State Tax Service exposes schemes of artificial business fragmentation

Press service of the State Tax Service of Ukraine, published 10 August 2026 at 11:38 Chapter: News

Since the beginning of this year, the State Tax Service has identified more than 500 brands and trademarks with signs of artificial business fragmentation.

According to the analytical research results, 23 large retail chains have been identified that have involved more than a thousand individuals-entrepreneurs in such schemes.

According to preliminary estimates, possible losses to the state budget due to tax evasion amount to at least 1.7 billion UAH. This was informed by acting Head of the State Tax Service, Lesya Karnaukh.

State Tax Service has transferred all materials to the law enforcement agencies. Pre-trial investigations are currently ongoing.

“This work continues. Currently, our specialists analyze possible use of business fragmentation schemes in 18 more large retail chains. These are retail enterprises that sell clothing, footwear, electronics, watches, cosmetics, household chemicals and catering establishments” – stated acting Head of the State Tax Service.

She emphasized that work of individuals-entrepreneurs and the company’s cooperation with such individuals-entrepreneurs is not a violation in itself. But when dozens of entrepreneurs are only formally separate business entities, but actually work as one company under a common brand, in the same stores, with common employees, warehouses and management, it is no longer a question of the business model, but of the honesty of paying taxes.

“My position is unchanged: rules are the same for everyone! This is what the business that works honestly wants. Because when some pay taxes honestly, and others invent schemes – these are unequal competition conditions” – Lesya Karnaukh added.