former head of STS Serhiy Verlanov / Photo from UNIAN
The officials' activities resulted in tax evasion in particularly large amounts.
The SBU Security Service of Ukraine says it suspects former senior officials of the State Tax Service (STS) of arranging a scheme for illegal value-added tax (VAT) crediting estimated at billions of hryvnias.
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According to law enforcers, top officials at STS territorial departments were also involved in the fraud. SBU officers established that the officials in 2019-2020, in conspiracy with organizers of transit-conversion groups, set up the illegal VAT credit scheme, as reported by the SBU press service on May 7.
SBU investigators also revealed the facts of meddling in electronic tax databases, including through altering algorithms of automatic verification of tax invoices in the register of business entities with "risk" features (fictitiousness).
"These actions led to the artificial formation of tax credits with VAT, which then was designated as for 'business entities' operating in the real sector of the economy. The officials' actions have resulted in tax evasion in particularly large amounts, as well as the legalization of illegally obtained funds," the press service said.
As part of initiated criminal proceedings, law enforcers conducted over 100 raids in different regions of Ukraine at offices and places of residence of the suspects, including the former STS chief, Serhiy Verlanov.
"The seized documents will be considered as evidence in the case. Bank accounts of the entities involved in the fraud were blocked. Moreover, VAT limits of these business entities in the electronic VAT administrating system were also frozen," the report said.
Further pretrial investigation is under way under Part 2 of Article 364, Part 3 of Article 258-5, Part 3 of Article 212, and Part 3 of Article 209 of the Criminal Code of Ukraine.