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20.03.2018

Criminal case against agricultural trader is dropped for lack of evidence of a crime

Subject of Complaint: State Fiscal Service of Ukraine (SFS), Investigative Department of Financial Investigations at the State Tax Inspection in Holosiyiv District of the General Directorate of the SFS in Kyiv (Holosiyiv STI Investigation Department).

Complaint in brief: On October 13, 2017, a Kyiv-based agricultural trader filed a complaint with the BOC regarding actions by the Holosiyiv STI Investigation Department. According to the Complainant, the company was baselessly accused of not paying taxes worth over UAH 18mn.

In January 2016, the SFS had audited the company, based on the results of which the Complainant owed UAH 18mn in back taxes. Disagreeing with this conclusion, the company appealed the SFS decision to the court. In June 2017, the Holosiyiv STI Investigation Department filed a criminal case against the company for tax evasion.

Over the next six months, the company was regularly requested to provide documents and its employees interrogated. The Complainant tried to independently resolve the problem, appealing to the Investigative Department and to the prosecutor’s offices in Holosiyiv District and the City of Kyiv, and even to the PGO. Still, the case was not dropped. 

Actions taken: The BOC investigator turned to the Kyiv Prosecutor's Office and the SFS to verify the legality and validity of the criminal investigation. After receiving the run-around from these government agencies, the investigator brought the Complainant’s case up with the PGO. 

Result achieved: With the Council’s support, on January 12, 2018, the Holosiyiv STA Investigation Department closed the criminal investigation against the company for absence of evidence of a crime. This allowed the Complainant to resume normal business operations. The case has been successfully resolved.