While Ukraine is trying to boost its economy and strengthen financial stability, schemes are emerging that not only undermine these efforts, but also cause significant damage to the state budget. One such scheme, which can be called the "Main scheme of the country", provides for the transformation of bananas into "linden grain" and receiving from the state 20% of the amount of fictitious exports.
The essence of the scheme
The scheme is as follows: businesses importing goods such as bananas find a way to fake them into other exportable goods, including grain. After that, they declare a fictitious export of these goods, receiving a VAT refund from the state in the amount of 20% of the "export" amount.
There is an importer, company A, who imported conditional "bananas" worth UAH 60 million into the country.
Money was officially paid for the import batch, and VAT was withheld at customs in the amount of 20% of the value, i.e. UAH 10 million.
Then the importer sells this product on the bazaar to wholesalers for cash, for example, for 120 million hryvnias.
Income tax is not paid, as the sale took place unofficially.
Also, he does not add VAT on the difference between the sales price and the customs declaration.
But he has 120 million hryvnias in cash, and the sales of the goods must be closed according to the balance. In addition, there is another UAH 10 million tax credit - you won't get it just like that.
And the importer finds a "roller company" that fictitiously buys bananas from him for UAH 60 million, i.e. at cost price and "rolls" the VAT tax credit for UAH 10 million, that is, takes it for itself.
The movement of goods takes place only on paper, in simple words, only the documents for the goods and the VAT tax credit are "sold and bought".
At the same time, the grain trader - Firm C buys grain on the domestic market.
It does this mostly for cash or buys from flat rate farmers who cannot provide a VAT tax credit.
As a result, the grain trader has 5,000 tons of grain worth UAH 30 million, but it is not officially on the balance sheet. There is no tax credit. What shall I do?
The grain trader turns to the "roller company" already known to us.
He buys 10,000 tons of grain from her for UAH 60 million. and receives a tax credit of 10 million hryvnias, previously "twisted" on bananas.
Now there is grain on the balance sheet and there is a tax credit.
Next, the grain trader exports 5,000 tons of legalized grain plus 5,000 tons of fake grain.
The grain trader transfers UAH 60 million to the rolling firm, and, in turn, sends this money to the importer, the importer gives the grain trader UAH 60 million in cash.
In the final, the grain trader receives another UAH 10 million in VAT reimbursement from the state, which is shared by the participants of the scheme.
In general, everything is only positive:
The importer received UAH 60 million in cash on his account and can buy a new batch of bananas.
The exporter received UAH 60 million in cash and can buy grain for cash again.
VAT is "twisted" and divided. The twister company received its commission.
Only the state is in the negative - it paid VAT refunds from a fictitious transaction and received distorted export statistics.
