The owner of a chain of footwear and leather goods shops in the Lviv region has reimbursed the state more than UAH 10.5 million in unpaid VAT after a tax evasion scheme was uncovered. This was reported by the Territorial Office of the Bureau of Economic Security in Lviv region.
According to the investigation, the man employed a “business splitting” scheme: proceeds from the sale of goods were recorded under 13 sole traders, who in reality were employed as staff in his shops. This allowed him to avoid mandatory VAT registration.
The mentioned sole traders did not conduct any independent business activity, and submitted their tax returns on the instructions of the owner of the chain. Over the course of 2025, according to the investigation, he evaded paying almost UAH 10.6 million in VAT on income of more than UAH 52.8 million.
The actions of the suspect have been classified under Part 2 of Article 212 of the Criminal Code of Ukraine as deliberate large-scale tax evasion. The man fully reimbursed the losses caused even before being held criminally liable.
An application has been submitted to the court seeking to release the owner of the chain from criminal liability in connection with the reimbursement of the losses. Procedural supervision in the proceedings is being carried out by the Lviv Regional Prosecutor’s Office.