Corruption in Ukraine’s Tax Service, Ukraine’s National Anti-Corruption Bureau (NABU), the Specialized Anti-Corruption Prosecutor’s Office (SAP), and the Security Service of Ukraine (SBU) have uncovered a massive corruption network within the State Tax Service.
According to investigators, the former head of the State Tax Service and a regional deputy in Poltava ran a “conversion center” with a turnover of around ₴15 billion.
Between 2020 and 2023, they created over 200 shell companies to generate fake tax invoices and help real firms evade taxes.
The total fake VAT exceeded ₴2.3 billion, causing ₴147 million in losses to the national budget.
Key Facts
| Indicator | Details |
|---|---|
| Period | 2020–2023 |
| Participants | 11 people |
| Fake companies | 200+ |
| Scheme turnover | ≈ ₴15 billion |
| False VAT | ≈ ₴2.3 billion |
| Budget losses | ≥ ₴147 million |
Fake VAT and Shell Firms: New Tax Fraud Scheme Uncovered in Ukraine
- Ex-head of the Tax Service — organized and supervised the scheme;
- Deputy head in Poltava region — facilitated key decisions;
- Linked companies — used for tax evasion and cash withdrawals.
A total of 11 suspects have been formally charged.
Corruption in Ukraine’s Tax Service
If such crimes remain unchecked, Ukraine risks:
- weakening trust in state institutions,
- growing shadow economy and fiscal losses,
- reduced investment and national instability.
Fighting corruption remains vital to ensuring economic integrity and national security.