Director of a Regional Belarusian Premium Apparel Company Evaded Nearly 3 million Belarusian rubles in Taxes by Selling Products Through a Front Entrepreneur

A large-scale criminal activity carried out by the director of a regional company specializing in the production of premium women’s clothing was suppressed by the regional unit of the Financial Investigations Department of the State Control Committee of the Republic of Belarus. The businessman’s products were sold through a network of retail stores in the capital and regional centers of Belarus, as well as in the territory of the Russian Federation.

It was established that over the past five years, the business owner used the details of a controlled individual entrepreneur registered in the Russian Federation to formalize fictitious transactions for the sale of his products to Russian buyers. In reality, the individual entrepreneur did not participate in the company’s operations, and the use of his details was intended to unlawfully minimize tax liabilities (the individual entrepreneur applied the simplified taxation system). In fact, all clothing produced was sold directly by the company to customers.

As a result of these unlawful actions, the business owner evaded taxes in the amount of 2.9 million Belarusian rubles.

In addition, over a four-year period, he submitted false information to the tax authorities regarding fictitious sales of clothing to the Russian Federation through the controlled individual entrepreneur, thereby unjustifiably obtaining a value-added tax refund from the state budget
in the amount of 552 thousand belarusian rubles, causing damage to the state in that amount.

Based on the facts of large-scale tax evasion and tax fraud on an especially large scale, two criminal cases have been initiated against the company’s director.

The head of the company has been detained, and his property has been seized.