Owners of a Network of Minsk-Based Fitness Clubs Artificially Split Their Business and Underpaid Taxes to the State Budget

The fact of large-scale tax evasion was uncovered by employees of the regional department of the Financial Investigations Department of the State Control Committee of the Republic of Belarus.

It was established that two beneficial owners of a network of Belarusian fitness clubs, in order to reduce tax payments to the state budget, in addition to the main limited liability company (LLC), arranged for the registration of two additional entities applying the simplified taxation system. The revenue received was artificially distributed between the LLC and the newly created business entities.

As a result of the unlawful application of the simplified taxation system, the LLC failed to pay taxes totaling more than 150 thousand belarusian rubles.

A criminal case has been initiated against the owners of the company. A preliminary investigation is underway.