The Ukrainian meat production company intentionally evaded tax payments during the period from 2018 to 2022 by unjustifiably applying a non-resident income tax rate of 5% (instead of 15%) in accordance with the Convention between the Government of Ukraine and the Government of the Republic of Cyprus on the avoidance of double taxation and the prevention of tax evasion concerning income taxes when returning dividends to the accounts of the parent company – a non-resident.

The chief accountant of the company, who was also authorized to carry out administrative, economic, and organizational functions in the non-resident company registered in the Republic of Cyprus without a permanent establishment in Ukraine, unlawfully used the reduced profit tax rate on income of foreign legal entities. As a result, taxes totaling over 28.9 million UAH did not reach the budget.

According to information from the competent authorities of the Republic of Cyprus, the non-resident company does not conduct any activities in the territory of the Republic of Cyprus and does not have its own offices.

Under the procedural guidance of the Office of the Prosecutor General, the chief accountant of the Ukrainian company has been notified of suspicion under Part 3 of Article 212 of the Criminal Code of Ukraine — intentional evasion of tax payments in especially large amounts.

During the pre-trial investigation, the Ukrainian company has fully paid the taxes and penalties amounting to over 34 million UAH.

Currently, the pre-trial investigation is ongoing, conducted by detectives of the Bureau of Economic Security of Ukraine with operational support from the Department of Strategic Investigations of the National Police of Ukraine.