A city council member in Zhytomyr Oblast evaded paying 12 million hryvnias in taxes
Under the procedural guidance of the Office of the Prosecutor General, on June 18, 2026, a sitting member of the Malyn City Council in Zhytomyr Oblast was notified of the charges against him.
Law enforcement officials uncovered a large-scale fraud scheme organized by the official at a local enterprise.
According to the investigation, the council member, who also served as the enterprise’s director, intentionally evaded paying value-added tax.
Investigators determined that the illegal activity had been ongoing for a long time.
Between April 2024 and January 2025, the enterprise reported in its tax returns the alleged purchase of heat supply services from another company that appears to be a shell company.
At the same time, as the investigation established, these services were not actually provided to any business entities.
The actual state of affairs differed significantly from the company’s official reports. The company generated thermal energy on its own, but its documents indicated that it had purchased it from another business entity.
Such “supplies” existed only on paper, which allowed management to exploit loopholes in the accounting system. This enabled them to artificially generate a tax credit and reduce the amount of VAT the company was required to pay to the government.
The schemes involving fictitious services caused significant financial losses to the state budget.
This was reported by the Office of the Prosecutor General.
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