Owners of a Major Belarusian Real Estate Leasing Company Suspected of Tax Evasion

The Financial Investigation Department of the State Control Committee of the Republic of Belarus has identified and suppressed a large-scale tax evasion scheme organized by officials of one of the major property developers in the capital of Belarus. The company was engaged in the construction of commercial real estate and the subsequent leasing
of premises.

The inspection revealed that, in order to reduce tax liabilities, the company’s owners additionally arranged the registration of 10 controlled business entities in the capital city and a regional district, all of which applied the simplified taxation system.

These entities, in fact operating as a single business, have since 2019 been engaged in the construction or acquisition of real estate, leasing of properties, and distribution of generated revenue among themselves, while unlawfully benefiting from the special tax regime.

As a result of the artificial fragmentation of business activities, the company underpaid more than 2,6 million Belarusian rubles in taxes to the state budget.

A criminal case has been initiated against the two owners of the company.

The damage caused to the state has been fully compensated by the suspects. A preliminary investigation is ongoing.