The SBU has blocked a large-scale interregional conversion center in the city of Odesa. It illegally reduced taxes for hundreds of millions of hryvnias.

Within the pre-trial investigation, the SBU found that the organizers used the details of dummy companies registered on figureheads. Dozens of powerful agro-industrial enterprises of Ukraine were the clients of this conversion center.

At the request, the offenders unlawfully minimized taxes to the state budget via feigned non-commodity transactions. They also helped to keep currency earnings and to divert funds into non-observed economy sector.

According to preliminary estimates, during 2020 – 2021 the state budget lost over UAH 100 m. (USD 3.6 m.) only due to non-payment of VAT. The exact amount of damage caused to the state is being established.

Law enforcement officers conducted 11 simultaneous searches in Odesa, Kharkiv, and Kherson regions, as well as of the director’s office and residence in Kyiv region. The SBU seized:

• equipment with documents;
• seals of controlled enterprises;
• primary accounting documentation;
• draft records.

The investigation is ongoing for sham business; evasion of taxes, duties or other compulsory payments.

The SBU is going to serve suspicion notices to the organizers of the illegal business.

The operation was conducted by the SBU Office in Odesa region jointly with the Main Directorate for CI Protection of the State's Economic Interests, as well as investigators of the State Tax Service in Odesa region, under the supervision of Odesa Region Prosecutor's Office.