The Security Service of Ukraine suspects former management of the State Tax Service of arranging the mechanism of illegal tax crediting on billions of grivnas.

Allegedly, territorial managers of the State Tax Service are also involved in the fraud. SBU established that during 2019-2020, the officials in conspiracy with organizers of transit-conversion groups set up the scheme of illegal tax crediting for VAT.

SBU also established the facts of unauthorized intrusion into the work of electronic tax databases, therewith through making changes to the algorithm for automatic verification of tax invoices in the Single Register of business entities with "risk" features (fictitiousness). These actions led to the artificial formation of tax credits with VAT, which then was screened as allegedly for the business entities of the real sector of the economy. The actions of officials have led to tax evasion in particularly large amounts, as well as the legalization of illegally obtained funds.

Within the framework of the initiated criminal proceeding, the law enforcement under the supervision of the Office of the Prosecutor General conducted over 100 searches in different regions of Ukraine at offices and places of residence of the suspects, including the Chief of the State Tax Service. The seized documents will be considered as evidence to the case.

SBU jointly with State Service of Monitoring initiated blocking of bank accounts of the entities involved in the fraud.

Moreover, VAT limits of these business entities in the electronic VAT administrating system are also arrested.

The pre-trial investigation is ongoing under Part 2 Article 364, Part 3 Article 258-5, Part 3 Article 212 and Part 3 Article 209 of the Criminal Code of Ukraine.