Cherkizovo Group prosecuted for siphoning off $5m to offshore companies

Cherkizovo Group prosecuted for siphoning off $5m to offshore companies
Searches as part of the investigation

Cherkizovo paid dividends to a Cypriot shareholder through illegal offshore schemes.

The website of the Ministry of Internal Affairs reported that a large agriculture holding was suspected of an illegal understatement of the tax rate and siphoning off $5m to an offshore company. TASS sources reveal that the large agriculture holding was actually the Cherkizovo Group.

According to the Ministry of Internal Affairs, Cherkizovo executives paid dividends to a Cypriot shareholder through illegal offshore schemes. The shareholder was a technical transit company. This allowed Cherkizovo to pay a third as much tax instead of the 15% they were supposed to pay. This caused damage to the state in the amount of about 300 million rubles ($5m). Russian Investigative Committee for Moscow instituted criminal proceedings to investigate the matter under part 2 of Art. 199.1 of the Criminal Code.

As part of the investigation into the criminal case, the police together with the OMON soldiers carried out searches in the offices and the homes of the Cherkizovo officials. Items and documents with signs of illegal activities were found and seized.

2 (1).jpg 3 (1).jpg
Searches as part of the investigation
1 / 3

The first suspect has already been found, although his name is yet to be revealed. He is known to be 39 years old and to have signed a written undertaking not to leave the place.

As a reminder, previously a subsidiary of the agriculture holding had been accused of fraud and preparation of crime. The meat processing enterprise had submitted a false declaration to the tax authority that claimed 16 million rubles of VAT had to be returned to them by the state.

Video: Searches as part of investigation into the case against Cherkizovo Group that siphoned off $5m

Discuss

Recommended

1 / 3