Large-Scale Tax Evasion Uncovered in a Regional Center of the Republic of Belarus in the Passenger Transport Sector

The regional office of the Financial Investigations Department of the State Control Committee of the Republic of Belarus has identified and suppressed a scheme involving large-scale tax evasion by business entities operating in the passenger transportation sector.

The scheme was organized by the executives of three private companies providing regional passenger transport services and ranking among the largest operators in this market within one of the regional centers of the Republic of Belarus.

It was established that, during the period from 2017 to 2025, the individuals involved arranged for the distribution of revenue generated from their services among a number of affiliated sole proprietors and one legal entity applying a simplified taxation system.

As a result of this «business fragmentation» scheme, the actual taxable revenue of the companies was deliberately understated.

The total damage caused to the state in the form of unpaid taxes exceeded 550 thousand belorussian rubles. Criminal proceedings have been initiated against the officials of the companies involved.