Sale of cars from Korea turned into a tax evasion case: UAH 12.2 million returned to the budget

In Kyiv, a company that sold used cars imported from the Republic of Korea reimbursed the state over UAH 12.2 million in value-added tax. The investigation was conducted by detectives from the Territorial Department of the Bureau of Economic Security in Kyiv.

According to the investigation, the company did not reflect the full volume of cars sold in its tax reporting. As a result, according to the BEB, the state budget received over UAH 12.2 million less in VAT.

Violations discovered during the inspection

Alleged violations in the company’s activities were discovered by employees of the State Tax Service during an unscheduled inspection.

Later, BEB detectives confirmed the amount of unpaid tax as part of the pre-trial investigation.

The head of the company was informed of suspicion under Part 3 of Article 212 of the Criminal Code of Ukraine – intentional tax evasion in particularly large amounts.

The company returned UAH 12.2 million to the state

During the pre-trial investigation, the company fully paid the amount of tax liabilities. UAH 12.2 million in VAT was returned to the state budget.

After that, a petition was sent to the court to release the company’s manager from criminal liability in accordance with Part 4 of Article 212 of the Criminal Code of Ukraine.

This provision provides for the possibility of release from criminal liability under the conditions specified by law, in particular in the case of payment of taxes and compensation for damage caused to the state by their untimely payment.

At the same time, the final decision on the release of the company’s manager from criminal liability must be made by the court.

The decision remains with the court

The Kyiv City Prosecutor’s Office carries out procedural management in criminal proceedings.

BEB also reminded of the principle of the presumption of innocence: a person is considered innocent until his guilt is proven in accordance with the procedure prescribed by law and established by a court verdict of guilt.