A large-scale conversion center with a turnover of 18 billion UAH was liquidated in Ukraine
The National Police of Ukraine reported the liquidation of a large-scale conversion center, which helped enterprises evade paying 56 million UAH in taxes.
During the operation, law enforcement officers found that the offenders used more than 100 fake enterprises and about 400 individual entrepreneurs to create an artificial VAT tax credit. Participants in the scheme converted the money into cash or cryptocurrency through a network of controlled non-resident companies registered in the European Union and the United Arab Emirates. The operation involved exchanges in many cities, including Kyiv, London, and Frankfurt.
The scheme’s organizer, currently abroad, managed activities through trusted individuals. His mother acted as the financial director. Law enforcement conducted over 40 searches in the Poltava region and Kyiv, seized money, documents, storage media, and detained several participants of the organization. The suspects have already been informed of the relevant articles of the Criminal Code of Ukraine, and the question of choosing preventive measures is being considered.
This case is not the only one in Ukraine: last year, a conversion center with a turnover of 15 billion UAH was exposed with the involvement of a former head of the State Tax Service. Experts believe that such illegal tax evasion significantly impacts the country’s economy by reducing its revenues and undermining legitimate business.
| Indicator | Value |
|---|---|
| Center turnover | 18 billion UAH |
| Tax evasion | 56 million UAH |
| Number of fictitious enterprises | 100 |
| Number of individual entrepreneurs | 400 |
| Non-resident companies | 20+ |
