Spouses, Owners of One of the Largest Women’s Footwear and Accessories Retailers in Belarus, Suspected of Tax Evasion

The regional office of the Financial Investigation Department of the State Control Committee of the Republic of Belarus has identified facts of large-scale tax evasion by a limited liability company based in one of the regional centers of Belarus engaged in the sale of women’s footwear and accessories.

The company’s retail network includes seven outlets in regional centers, as well as an online store.

In order to reduce tax liabilities to the state budget, the married couple owning the business, over a period of several years, unlawfully benefited from a special tax regime by artificially fragmenting their business activities. Revenue generated from the sale of goods was distributed between the company and individual entrepreneurs applying the simplified taxation system, registered in the names of relatives and acquaintances of the business owners.

The individual entrepreneurs cashed out the funds received into their accounts and, after deducting a certain commission, transferred the remaining amounts to the spouses.

The damage caused to the state in the form of unpaid taxes exceeded 1,4 million belarusian rubles.

A criminal case has been initiated against the married couple and the involved individual entrepreneurs on the grounds of tax evasion on an especially large scale. The suspects’ property has been seized. Measures are being taken to compensate the damage caused.