Activities of Shell Companies Used for Tax Evasion Suppressed in the Capital of the Republic of Belarus

Employees of the financial investigation unit of the Republic of Belarus have established that, since 2020, a limited liability company (LLC) based in the capital city had been recording false information in its accounting documents regarding allegedly conducted business transactions with six shell companies.

During the inspection, it was found that when the company purchased various goods, deliveries were, by agreement with suppliers, formally documented as being made to fictitious entities. Subsequently, these shell companies sold the goods to the LLC at markups ranging from 200% to 600%.

In reality, the purchased products were delivered directly by the suppliers to the LLC, while the fictitious document flow made it possible to unjustifiably increase the company’s expenses taken into account for taxation purposes, as well as to overstate the amount of tax deductions.

The damage caused to the state in the form of unpaid taxes exceeded 1 million belarusian rubles.

A criminal case has been initiated against the director of the limited liability company.