Former director of tobacco company reported on suspicion of evading over UAH 2.3 billion in taxes

The former head of a tobacco company was reported on suspicion of intentional tax evasion in particularly large amounts. According to the investigation, due to the illegal production and sale of tobacco products, the state budget received more than 2.3 billion hryvnias in excise tax.

This was reported by the Prosecutor General of Ukraine Ruslan Kravchenko.

According to the investigation, the company’s officials, under the guise of legal production, organized the production and sale of unregistered tobacco products outside the official tax and accounting records.

The key episode in the case was the use of more than 1,186 tons of tobacco raw materials, which, according to law enforcement officers, were processed into cigarettes and sold without paying excise tax.

The results of the tax audit and forensic economic examination confirmed the underestimation of tax liabilities by more than 2.3 billion hryvnias.

The investigation is also checking the version of the possible falsification of the theft of tobacco raw materials in order to conceal its actual use and create artificial force majeure circumstances.

The ex-director is charged with Part 3 of Article 212 of the Criminal Code of Ukraine – intentional tax evasion in especially large amounts. The pre-trial investigation is being conducted by detectives of the Bureau of Economic Security of Ukraine.