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Kharkiv PO closes criminal case against wholesaler over UAH 10mn in back taxes

26.03.2018

Subject of Complaint: Investigation Department of the Kharkiv Oblast Prosecutor's Office (Kharkiv PO)

Complaint in brief: On March 20, 2017, a wholesaler of goodies complained to the BOC about the actions of the Kharkiv Prosecutor's Office. According to the Complainant, the company was being accused of not paying taxes and charged over UAH 10mn.

In April 2016, the SFS audited the company and demanded  the Complainant to pay UAH 10mn of taxes and fines. The company disagreed with these conclusions and appealed the tax audit ruling, which was shortly cancelled by the SFS itself. However, the Main SFS Department in Kharkiv Oblast launched a criminal investigation against the company for non-payment of taxes. In August 2016, the pre-trial investigation was transferred to the Kharkiv PO. The Complainant repeatedly but unsuccessfully appealed to the supervisor of the pre-trial investigation to close the case. In particular, the Complainant referred to the results of a forensic expertise that contradicted the conclusions of SFS audit.

Actions taken:  The BOC investigator thoroughly investigated the circumstances of the case and sent a request to the Prosecutor General’s Office to review whether the pre-trial investigation needed to continue. She sent a similar appeal to the Kharkiv PO. In addition, the Council repeatedly put the company’s case on the agenda of the PGO Expert Group.

Result achieved: With the Council’s support, the Kharkiv Prosecutor’s Office closed the criminal case against the Complainant in March 2018. The case solved successfully.