In Volyn, the State Fiscal Service uncovered tax evasion totaling nearly ₴28 million in the flower business
Detectives from the Volyn Regional Office of the Economic Security Bureau have completed a pretrial investigation into a case of tax evasion involving the import and sale of floral products. According to the investigation, the company used a scheme to artificially fragment its business through a network of individual entrepreneurs.
The Economic Security Bureau reported that the flower shops, which operated in ten regions of Ukraine, were in fact a single retail chain; however, sales were recorded through individual sole proprietors who were registered under the simplified tax system.
“It has been established that the company’s management organized a mechanism for artificially fragmenting the business,” the Economic Security Bureau noted.
According to law enforcement officials, the controlled sole proprietors effectively performed the functions of hired employees and operated within a single business activity, which allowed the company to minimize its tax liabilities.
In 2025, the company failed to report over 27.9 million hryvnias in revenue from flower sales in its tax returns, resulting in a shortfall of 10.6 million hryvnias in value-added tax and income tax for the state budget.
During searches, detectives seized financial documentation, draft accounting records, computer equipment, qualified electronic signatures of the sole proprietors under the company’s control, and other evidence confirming the use of a tax evasion scheme.
In addition, BEB analysts identified risks of underreporting customs duties during flower imports. Following the audits, imported goods began to be declared at a higher customs value.
As a result, the volume of import transactions increased 2.5-fold, and the declared customs value of the goods rose by 137 million UAH. At the same time, the amount of customs duties increased by 36.5 million UAH compared to the same period the previous year.
The company’s director has been notified of the charges against him. The losses incurred by the state have been fully compensated. Additionally, according to the Economic Security Bureau (ESB), the suspect voluntarily transferred 500,000 UAH to support the Armed Forces of Ukraine.
This was reported by the Bureau of Economic Security.
Previously, a municipal enterprise operating in the waste management sector transferred over 13.7 million hryvnias to the state budget following an investigation by the Bureau of Economic Security. According to the investigation, officials had been underreporting the environmental tax for years in connection with waste disposal.
The Economic Security Bureau is conducting searches at a metallurgical plant in Brovary, owned by ALTEG LLC and BRAZ LLC, in connection with a case involving alleged large-scale tax evasion.
