Tax scandal at Naftogaz: Vitrenko says Kobolyev did not pay UAH 66 million

15 October 22:29

The former head of Naftogaz of Ukraine , Andriy Kobolyev , failed to pay taxes on a bonus of UAH 339 million received through a bank guarantee mechanism created during his tenure at the company. Former Naftogaz CEO Yuriy Vitrenko wrote about this on his personal Facebook page, "Komersant Ukrainian" reports.

According to the former official, in early October, he participated in a court hearing at the High Anti-Corruption Court (HACC) in this case as a witness.

He notes that:

“During my interrogation, Kobolyev’s lawyers ‘hinted’ at my alleged involvement in tax evasion by Naftogaz. I am outraged by this, as it is actually about Kobolyev’s own failure to pay personal income tax (PIT) in the amount of UAH 61 million and military duty in the amount of UAH 5 million – from the “second part” of his award for the Stockholm Arbitration in the amount of UAH 339 million received in 2021.

Vitrenko writes that during the period when Kobolyev was heading Naftogaz, the company transferred funds to the bank to secure a bank guarantee in his favor. Later, when Naftogaz refused to pay the bonus directly, Kobolyev received the money through this mechanism.

After transferring the funds, the bank informed Naftogaz that it had paid Kobolyev the full amount without withholding taxes. Since the company did not make a direct payment, no personal income tax was withheld.

In this case, Kobolyev would have to declare and pay taxes himself. However, he did not do so either in 2021, when he received the funds, or in 2022, when the deadline for filing the declaration came.

Tax audit and decision

During the tax audit of Naftogaz, the controlling authorities clarified the circumstances of the bonus and the bank guarantee mechanism. Nevertheless, the State Tax Service concluded that it was the company that had to pay the tax, not Kobolyev, who actually received the money.

Thus, Naftogaz was ordered to pay taxes and military duty on the full amount of the payment. This means that Kobolev will receive more than his contract and the decisions of the Supervisory Board.

Arguments of the parties

“Naftogaz is appealing the tax authority’s decision, considering it illegal and unfair. The company emphasizes that in wartime, the funds should be used to purchase gas, not to cover the tax liabilities of the former CEO.

Kobolyev’s critics (including Yuriy Vitrenko) also point out that he converted the hryvnia he received into dollars and took it abroad, benefiting from the further devaluation of the national currency. This, in their opinion, gives him the opportunity to pay taxes at a more favorable rate.

Dispute over the seizure of funds

Kobolyev’s supporters claim that he cannot fulfill his tax obligations because his accounts are allegedly seized, and citizens have even raised funds for his bail. However, according to experts, no evidence of the arrest has been provided to the court.

In addition, there is speculation that the funds could have been withdrawn even before the arrest through trusts or companies registered in the United States, where Kobolyev could have been a beneficiary.