Illegal “Off-the-Books” Salary Scheme Uncovered in 16 Belarusian Taxi Companies

The Financial Investigations Bodies of the State Control Committee of the Republic of Belarus have uncovered a large-scale illegal scheme in the passenger transportation sector involving the payment of «Off-the-Books» salaries by taxi companies.

As a result of operational and investigative measures, the unlawful activities of 16 taxi companies in the capital and a regional center of the Republic of Belarus have been suppressed. It was established that company executives and officials organized the payment of undeclared wages to more than 4 000 taxi drivers.

Taxi drivers retained cash payments received from customers as «grey» wages, which were not recorded in official accounts. In cases where such funds were insufficient (for example, when a significant number of trips were paid by card), drivers were additionally provided with cash «in envelopes» at company offices, sourced from previously withdrawn funds.

For non-cash payments made by passengers, company executives withdrew a portion of these funds via corporate cards under fictitious purposes such as «operational expenses». To substantiate these false purposes and alleged expenses, officials of the illegal taxi companies collected receipts and payment documents from acquaintances at gas stations, service centers, car washes, and other businesses, subsequently incorporating them into the companies’ accounting and tax records.

It has been established that the taxi companies failed to pay personal income tax totaling more than 5 million Belorussian rubles. The amount of mandatory contributions unpaid to the Social Protection Fund is currently being assessed.

Criminal proceedings have been initiated against five executives and officials, with a total of 16 criminal cases opened. The suspects have been detained, are providing confessions, and are compensating for the damage caused. Their property and funds held in company bank accounts have been seized.