Investigative Committee Uncovers Tax Evasion Scheme in Car Repair Business
Reform.news Editorial Team · 10 November 2026, 15:45
https://reform.news/en/investigative-committee-uncovers-tax-evasion-scheme-in-car-repair-business/The Investigative Committee has announced that it has uncovered a scheme involving the artificial splitting of a business to evade taxes. A criminal case has been opened against a 51-year-old businessman from Minsk.
According to investigators, the man was the founder and director of a private unitary trading enterprise that provided maintenance and repair services for trucks. To reduce his tax burden, the businessman formally divided the business among three companies, although repairs were carried out in the same garages by the same employees.
The main company operated under the general taxation system, paying VAT and corporate income tax. In 2021 and 2022, the Minsk businessman registered two more commercial entities and switched them to the simplified taxation system, which does not require VAT payments. An acquaintance of the businessman, who had no involvement in the company’s actual management, was listed as the founder of one of the companies.
The companies’ revenue was distributed in such a way that the new entities did not exceed the thresholds for using the simplified taxation system, while the main company’s taxable income was artificially reduced.
The Investigative Committee estimates that unpaid taxes exceeded 1.256 million rubles between 2021 and 2024.
During inspections, investigators seized founding documents, loan agreements and 1C: Accounting databases, and questioned dozens of company employees.
A criminal case has been opened against the businessman on charges of large-scale tax evasion (Part 2 of Article 243 of the Criminal Code). The accused admitted guilt and voluntarily compensated the state in full for the damage caused before the investigation was completed, paying the accrued interest and fines as well. The case has been transferred to the prosecutor’s office for referral to court.