In May, the Ministry of Income attracted to the budget 2.6 billion UAH by combating tax pits

By eliminating corrupt practices of obtaining illegal tax credit, in May, the Ministry of Income attracted to the state budget 2.6 billion hryvnia.

It refers to combating the so-called "tax holes" – bogus companies that provide services to receive scheme VAT credit and minimize income tax. According to the Ministry of Income, the illegal turnover through tax holes in 2013 was 300 billion hryvnias, leading to 50-70 billion hryvnia of lost tax revenues to the state budget. And the average amount of scheme credit last year reached 3.9 billion hryvnia.

"Tax holes have always existed, but in recent years under the previous management of the Ministry of Income, the problem of VAT theft has gained catastrophic proportions. Fighting it is difficult because, unlike the organizers of these schemes, we work exclusively within the law. However, the first results of our work are already visible", – the Deputy Minister of income and taxes Igor Bilous said.

The new management of the Ministry of income, which began working in March, immediately declared war against tax holes. Due to counteracting the formation of scheme credit, closing of so-called "government programs" and elimination of "partisan" sites, the amount of illegal credit decreases each month. As a result, applications for VAT refunds have decreased by almost 700 million hryvnia, and charges have increased by 900 million hryvnia. As a result of unshadowing, the Ministry managed to cut losses from the economic downturn and ensure stable revenues to the budget.