To avoid paying taxes, the director of a Belarusian freight company devised an illegal scheme and involved individual entrepreneurs in it

The Regional Office of the Financial Investigations Department of the State Control Committee of the Republic of Belarus has uncovered unlawful activities by a Minsk-based freight transportation company.

The head of the company is suspected of large-scale tax evasion.

It was established that he organized an illegal scheme under which five Belarusian individual entrepreneurs—previously employed by the company—allegedly provided freight transportation services to the firm. In reality, all cargo transportation was carried out by the company itself. Meanwhile, the company’s accounting records contained fictitious documents for business transactions with the entrepreneurs. This allowed the firm to unjustifiably inflate its tax-deductible expenses and reduce its profit tax base.

The funds transferred to the individual entrepreneurs’ bank accounts were withdrawn by them as personal income. The entrepreneurs kept an amount equivalent to their salaries, while the remaining money was handed over to the director, who used it at his discretion, bypassing taxation.

The damage caused to the state in the form of unpaid taxes amounted to more than 700,000 Belarusian rubles.

A criminal case has been initiated against the director of the freight company.