The SBU exposed a criminal group which organized an illegal scheme of value added tax (VAT) refund.

The scheme allowed the dealers to receive refund of artificially created VAT from the state budget amounting to more than UAH 8 m. (USD 285,000).

The SBU investigators found that the scheme was set up by the management of a food company located in city of Cherkasy.

The scheme involved three bogus firms registered in different regions. Due to fictitious non-commodity transactions, the products were ostensibly transferred for processing to a company, which is part of one of the largest agricultural holdings in Ukraine.

Having received the relevant certificates from the agricultural holding, the Cherkasy company exported products.

During the searches of the offices in different regions of Ukraine, the law enforcement officers seized financial documents, samples of the stamp of the meat producer, and false accounting records confirming illegal transactions.

The investigation is ongoing upon the fact of misappropriation, embezzlement or conversion of property by malversation.

The operation was conducted under supervision of Cherkasy Region Prosecutor’s Office.