On 1 February, the State Bureau of Investigations is conducting searches as part of its enquiry into the head of the State Tax Service in Kyiv.
Source: Ukrainska Pravda sources in law enforcement agencies; press service of the State Bureau of Investigation
Details: The investigation is focused on the acting head of the Kyiv Tax Service and the deputy head of the Main Department of the State Tax Service in Kyiv.
According to Ukrainska Pravda sources in law enforcement agencies, the Bureau's investigators are looking into an allegation of illegal receipt of VAT refunds from the state budget which involved representatives of the tax authorities abusing their power and official position.
Update: The State Bureau of Investigation later reported that they have exposed Oksana Dutii, the head of the Tax Service of Kyiv, as being involved in illegal multi-million-dollar transactions.
According to the investigation, in an abuse of her power and official position, Datii was paid to make decisions regarding non-compliance with the taxpayers’ risk criteria for several businesses.
Dutii chairs a commission on the suspension of registration of tax invoices/calculating adjustments in the Unified Tax Invoice Register kept by the Main Department of the State Tax Service in Kyiv.
Together with other members of the commission, she took decisions on compliance or non-compliance with the taxpayers’ risk criteria without legal grounds, which gave rise to serious consequences, the Bureau notes.
In addition, according to the latest information, Datii implemented schemes through proxies to artificially inflate some businesses’ gross expenses, conduct business activities without registering as a sole trader, and provide false information on income.
According to expert estimates, more than US$370 million ended up in shadow circulation.
On another occasion, senior officials at the Main Office of the State Tax Service in Kyiv were involved in schemes relating to the illegal receipt of VAT refunds, which resulted in over US$740 million entering the shadow economy.
Tax officials either "did not notice" these schemes, supported their existence, or directly participated in them in exchange for regular payment for their "services", the State Bureau of Investigations noted.
Bureau operatives are also investigating Dutii’s lifestyle, which is inconsistent with the level of her official income.