Losses exceeding 38 million hryvnias: The BEB has uncovered a scheme to fragment the secondhand goods market
19 May 15:06
Detectives from the main investigative unit of the Economic Security Bureau of Ukraine have uncovered a large-scale scheme to minimize tax liabilities in the secondhand retail sector through controlled individual entrepreneurs (FOPs), according to "Komersant Ukrainian".
According to the agency, the estimated losses to the state budget from unpaid VAT amount to over 38.6 million hryvnia.
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The investigation established that the chain of stores effectively operated as a single company with centralized management; however, its activities were officially registered under more than 530 controlled sole proprietorships operating under the simplified taxation system.
Once the permissible income limits were exceeded, the entrepreneurs were not transferred to the general taxation system but continued to be used to reduce the tax burden. According to photos on the agency’s website, the chain in question is Econom Class, which has been operating in Ukraine since 2005 and has 23 stores in Kyiv.
According to data from BEB analysts, between 2023 and 2025, at least 23 sole proprietors were involved in the scheme, through whom financial transactions totaling over 231 million UAH were carried out.
Detectives conducted 23 searches in the Rivne, Volyn, Vinnytsia, Kyiv, and Khmelnytskyi regions at the suspects’ residences and business locations. During the investigative actions, data storage devices were seized containing information on the activities of over 530 sole proprietorships for the years 2024–2026, which may indicate systematic fragmentation of the business.
The pre-trial investigation is ongoing with operational support from the USR in the Khmelnytskyi region, the DSR of the National Police, and procedural guidance from prosecutors of the Office of the Prosecutor General.
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