30.06.2024 Money laundering

200,000 dollars for silence. How the government is pressuring and killing Ukrainian business

Ukrainian business is under pressure not only from the government, which raises taxes and uses financial mechanisms to influence businesses, but also from the pro-government media. 

Six months ago, Uklon, a taxi service, became the main target of the anonymous telegram channel Joker. According to estimates, the latter mentioned the taxi service in its publications more than 320 times, an average of 6.2 messages per day. Interestingly, the taxi service is not the first “victim” to be targeted by the channel. Earlier, the Joker also attacked Citrus, Stylus, Techno Hedgehog and other representatives of Ukrainian business for various reasons.

The charges against Uklon include working during curfew, driving without a licence, registering in Cyprus and reducing the tax base, and working with the “wrong” payment service. It’s hard to disagree with Joker’s arguments, as the service does use offshore accounts to evade taxes. And in the event of the slightest exposure, they blame the drivers, who ultimately become the perpetrators of all crimes.

Offshore accounts and tax evasion

According to open sources, the founders of Uklon Ukraine LLC are Dmytro and Viktoriia Dubrovsky (38.46% each), Vitalii Dyatlenko and Serhii Smus (11.54% each). At the same time, the company has a controlled company in Cyprus – Uklon Ltd. This is openly discussed there.

In one of their comments, Uklon noted that they had registered trademarks, software and other intangible assets for the Cyprus legal entity: “This company was established long before the war. First of all, it was created for expansion, as development in new markets has been a long-standing strategic goal of Uklon.”

It is worth noting that the practice of registering companies in Cyprus is quite common for Ukrainian business structures. Every second giant enjoys the privileges of the Cypriot system, which allows them to avoid paying taxes to the country’s budget on profits earned in Ukraine.

Uklon, as well as the Ukrainian-registered LLC Uklon Ukraine, LLC Uklon Corporation, LLC Tech Uklon, and NGO Uklon KEA, do not indicate the relevant NACE code, namely 49.32 “provision of taxi services”, in their activities. The company itself and its drivers do not have the appropriate licences to provide taxi services, although this is a mandatory requirement. The facts mentioned in this paragraph indicate one of the ways in which Uklon is evading payment.

At the same time, Uklon itself does not position itself as a taxi service, but as a platform that helps connect drivers and passengers. The company believes that it is the driver’s responsibility to have a licence.

In addition, Uklon does not specifically enter into contracts with drivers for passenger transportation. Instead, they sign contracts only for access to the platform. Thus, they shift the entire responsibility to the drivers.

What’s next?

And while the Joker has forgotten about Uklon’s activities and all the shady aspects revealed (I wonder what the reason for this silence is? Did they manage to fly the service around?), we are initiating a study of the company’s work by law enforcement and tax authorities. Based on our materials:

  • The Pechersk District Prosecutor’s Office of Kyiv is conducting an investigation in proceedings No. 42024102060000075 under Part 2 of Article 364 of the Criminal Code of Ukraine, 
  • Bureau of Economic Security in Kyiv – № 72024102200000005 under Article 212, Part 1 of the Criminal Code of Ukraine
  • Investigative Department of the Shevchenkivskyi Police Department of the Main Directorate of the National Police in Kyiv – № 12024100100002061 under Article 364(1) of the Criminal Code of Ukraine.

However, such formalities make zero sense. After all, law enforcement officers apparently do not care about the detected offences and the shadow side of Uklon’s activities, which are likely to cause the country to lose millions to the budget. 

Just as they don’t care about the functioning of other business giants that continue to evade taxes and withdraw money earned in Ukraine, stealing billions that pensioners and low-income families then lose. 

So how can we make law enforcement and tax officials finally fulfil their duties?

Did you witness a crime?

Let us know about it. We will help protect the violated rights!

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