The SBU jointly with the Prosecutor General’s Office, the State Tax Service, and the State Financial Monitoring Service conducted a special operation to uncover and block within the State Tax Service an illegal scheme for VAT tax of crediting of economic agents.

Allegedly, such scheme caused monthly losses to the state amounting to UAH 2 billion (USD 74.1 million) during 2019-2020. The pre-trial investigation established that the officials of the State Fiscal Service (after reorganization - the State Tax Service), its’ regional units and transit-conversion groups involved in illegal activity. In total, almost 400 economic agents.

They also unlawfully interfered into information and telecommunication systems. Such intervention distorted information processing. As a result, the state budget suffered large-scale losses.

The SBU carried out over 120 searches and seized documents, computers, USB drives and seals of almost 60 enterprises involved in scheme, and UAH 1.5 million (USD 55,555) in cash. Over UAH 100 million (USD 3.7 million) were seized from the enterprises’ bank accounts. Moreover, were seized the funds on the accounts of taxpayers in the VAT electronic system (in total - USD 21.7 million).

During the special operation, the SBU developed several systemic solutions to prevent such schemes in future. Due to new approaches, the SBU prevented large-scale losses amounting to USD 7.4 million.  In May and June alone, the state budget received UAH 6.4 billion (UAH 237 million) of tax payments.

Therefore, the SBU proposed that the State Tax Service jointly with the Ministry of Digital Transformation not only eliminate system shortcomings, but introduce comprehensive protection of electronic goods to avoid human factor and change software algorithms.

A person that unlawfully interfered into information and technical systems received a notice of suspicion. Court has already passed a sentence to a founder of three enterprises involved in criminal activity. This three enterprises caused losses to the state budget in the amount of UAH 100 million (USD 3.8 million).