Director of a Major Belarusian Electrical Installation Company Used an Acquaintance Entrepreneur to Cash Out Funds. The Company Paid No Taxes

Facts of tax evasion and cash-out schemes have been identified and suppressed by a regional division of the Financial Investigation Department of the State Control Committee of the Republic of Belarus. The director
of a Minsk-based company engaged in the installation of complex electrical engineering equipment at various facilities is suspected of large-scale tax evasion.

The company’s accounting records included fictitious documents stating that an individual entrepreneur had performed commissioning and adjustment works on installed equipment, which in reality were not carried out.

At the same time, payments were transferred to the entrepreneur for allegedly performed works, which artificially inflated the company’s expenses and simultaneously understated its revenue. Over a five-year period, more than 1,2 million belarusian rubles was transferred to the entrepreneur’s account and subsequently concealed from taxation by the company.

The entrepreneur later cashed out the funds and handed them over to the company’s director, retaining only incurred expenses. The cashed-out funds were used by the director for personal needs.

The total amount of unpaid taxes by the company exceeded 470 thousand belarusian rubles. During the investigation, the damage was fully compensated.

Criminal proceedings have been initiated against the company’s director.