A scheme worth millions: in Chernivtsi region, the BEB discovered “crushing of FOPs” in international transportation

Detectives of the Territorial Department of the Security Service in the Chernivtsi region uncovered significant tax evasion in international freight transportation. According to the investigation, due to illegal financial transactions, the state budget did not receive millions of hryvnias.

During the pre-trial investigation, law enforcement officers discovered a natural person-entrepreneur engaged in international transportation of goods. To avoid paying taxes on a general basis, he used the “business fragmentation” scheme.

The investigators found that the company’s employees were formally registered as individual entrepreneurs, although they all actually reported to the scheme’s organizer. Funds received for transportation were transferred to the accounts of these controlled natural-person entrepreneurs in cashless form, allowing them to avoid the general taxation system and pay taxes at reduced rates.

Instead, the statutory 18% income tax was not paid, resulting in a non-payment of approximately UAH 5 million to the state budget. At the moment, the suspect has reached a deal with the investigation and has begun compensating for the damages.

The pre-trial investigation is conducted under Article 212 of the Criminal Code of Ukraine. Operative support is provided by employees of the Police Department in the Chernivtsi region, and the Chernivtsi regional prosecutor’s office provides procedural management.