In Dnipropetrovsk region, the SBU stopped activities of the conversion center, which a number of regional enterprises used for tax minimization.

Allegedly, a local businessman set up illicit scheme. The perpetretors offered customers “services” to withdraw money through the shell companies. The organizers gave companies the opportunity to artificially build a tax credit and to transfer part of the funds into cash.

According to preliminary estimates, during 2019-2020, almost UAH 1 b (circa USD 321,429) were transferred via the conversion center. Currently, SBU officers are establishing an exact amount of the state losses.

The SBU jointly with the CSO “A” detained the offender while transferring almost UAH 2.5 m (USD 89,286) in cash.

Law enforcement officers conducted 13 authorized searches of the suspects’ places of work and residences, including the State Tax Service office. During the searches, SBU officers seized more than EUR 230,000, almost UAH 4 m (USD 142,858), over USD 220,000 and 20,000 pounds. Additionally, the employees of the special service found computers and “black” accounting records with evidence of illegal activities.

The criminal proceedings were initiated for criminal offense committed by a group of persons upon prior conspiracy, money laundering, tax evasion and official negligence. The issue of serving the offenders suspicion notices is being resolved.

Investigation is ongoing to identify and bring to justice all involved individuals. The issue of compensating the losses to the state budget is also being settled.

The operation was carried out jointly with the Main National Police Directorate in Dnipropetrovsk region and the internal security of the Main Directorate of the State Tax Service in Dnipropetrovsk region under the supervision of the Regional Prosecutor's Office.