The Bureau of Economic Security of Ukraine (BEB) has uncovered a large-scale tax evasion scheme in which two ferroalloy plants affiliated with oligarch Ihor Kolomoisky evaded almost 1.2 billion hryvnias in taxes. The companies abused the understatement of the value of their products, which they exported to European countries, including Austria and Cyprus.
How did the scheme work?
According to BEB, the plants have been exporting ferroalloy products to a number of European countries for a long time, while deliberately understating their value. This allowed them to avoid paying taxes in Ukraine. During 2022-2023, raw materials worth a total of 853 million US dollars were exported, but the foreign exchange earnings were not returned to Ukraine. One of the companies was left with a debt of 1.1 billion hryvnias.
BEB has launched an investigation, including searches of the enterprises to collect evidence and seize documents confirming the illegal activities. BEB employees plan to find the remains of ferroalloy products, as well as primary financial documentation, which will help complete the investigation.
The amount of evaded tax is 1.2 billion hryvnias. If proven guilty, the companies can be held liable, which entails large fines and sanctions. In this case, the BEB also seized seven aircraft of a Cypriot company associated with this scheme.
