The Security Service of Ukraine exposed and blocked the activity of an interregional tax minimization center, which worked for large agricultural producers from several regions of the country.

The SBU operatives established that a businessman from Kyiv, who sells fuel, was the organizer of the center. He created a number of bogus companies, through which, using the entrepreneurs, sold fuel for cash. However, the products were allegedly stored at a businessman's oil depot in Zhytomyr region. This allowed the perpetrator to provide false data about the presence of product residues.

Then accountants made false documents about fuel sale to the customers of the center. This scheme allowed "buyers" to illegally minimize the tax payment. Consequently, fuel was sold at higher prices, which significantly increased farmers’ expenditure on growing and harvesting agricultural products.

Large private and state agro-industrial enterprises were among the clients of the center.

According to the experts, during 2019-2020, the perpetrators "helped" farmers in tax crediting with VAT for more than UAH 12,000,000 (USD 425,000). For their "service” the suspects received 5-6% of the amount.

Law enforcement officers conducted six simultaneous searches in Kyiv City, Kyiv and Zhytomyr regions and seized office equipment with documents, primary accounting documentation and draft records of the dealers.

The investigation is ongoing upon the fact of intentional evasion of taxes or fees, that resulted in actual non-receipt of especially large amounts of funds by budgets or special state trust funds (Part 3 of Art. 212 of the Criminal Code of Ukraine).

The operation was conducted by the SBU Office in Zhytomyr region jointly with the Department of Strategic Investigations of the National Police in Zhytomyr region under the supervision of the Prosecutor's Office.