Head of Poltava Mining to be tried for evading over UAH 1.7 bln in taxes
The head of PrJSC Poltava Mining and Processing Plant (Ferrexpo Poltava Mining), which is part of the Ferrexpo plc group and is associated with the former MP on the international wanted list, Kostiantyn Zhevaho, will be tried for evading taxes of over UAH 1.7 billion.
"The enterprise, which carries out the extraction, processing and export of iron ore, is part of the structure of the industrial and financial group controlled by the former MP of Ukraine, who is on the international wanted list. The company is part of the Ferrexpo plc group and is one of the world's largest producers of high-quality pellets and a payer of royalties for the use of subsoil for the extraction of minerals," the department's website said in a statement on Friday.
According to the investigation, the head of the specified plant organized a tax evasion scheme that involved understating the cost of iron ore products during their sale to related foreign companies registered in jurisdictions in Europe and the Middle East.
"As a result of such illegal actions, the state budget has not received more than UAH 1.7 billion in profit tax in 2015-2017," the report states.
Currently, the pretrial investigation in the criminal proceedings has been completed.
The Prosecutor General's Office has already sent an indictment against this head of the mining and processing plant to court. He will be tried for intentional tax evasion in a particularly large amount and entering knowingly false information into official documents (Part 3 of Article 212, Part 2 of Article 28, Part 1 of Article 366 of the Criminal Code of Ukraine).
In turn, the press release of the Economic Security Bureau (ESB) specifies that detectives of the ESB Main Detective Unit have completed the pretrial investigation into criminal proceedings and have sent an indictment to the court against the head of Poltava Mining. He is suspected of intentional tax evasion in particularly large amounts and issuing knowingly false official documents.
Poltava Mining and Processing Plant is part of the Ferrexpo group of companies, the ultimate beneficial owner of a significant share of Ferrexpo is Kostiantyn Zhevaho.
Chairman of the Board of Poltava Mining and Processing Plant is Viktor Lotous.