Because of the activities of tax pits the budget lost annually 50-70 billion UAH of VAT revenues. This figure refers to the state fiscal service.

See also: a Scheme against Independence. 26 examples of systemic corruption in Ukraine.

The scheme of tax holes is used to ensure that a legal entity could receive more VAT refunds from the state or, conversely, to reduce their tax liabilities to the budget through the transactions with fictitious companies.

An example of overstatement of expenses looks like this: a company orders from fictitious firms, some services at an inflated price, which are actually made by staff members. The money is technically the tax pass through the hole, and cashed cache (with significant change) is returned in the form of wages.




GFS: due to tax holes, the budget has lost up to 70 billion UAH annually 28.08.2017

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