As a result of an ongoing investigation on creation and use of counterfeited VAT assets jointly by more than one person, on July 27, 2019, Investigation Service of the Ministry of Finance has detained G.T., an owner one of Cyprus-based oil company and representative of the same company in Georgia V.K., who were managing oil companies registered in Georgia.

Investigation determined that G.T. and V.K. entered into criminal agreement with one of Georgia-based companies owning large amount of counterfeited VAT assets. Within illicit agreement,” they have imported oil without customs clearance and using fake tax documents (invoices) fictitiously assigned goods to a company with fake assets. Following company later declared fuel using counterfeited assets (showed payment of excise and VAT from counterfeited assets) and subsequently showed that goods were supplied to other companies, thereby avoiding particularly large amount of tax.

As a result of the crimes committed by G.T. and V.K. damage caused to the state budget estimates GEL 2 837 683 at this stage.

On July 29, 2019, G.T. and V.K. were pleaded guilty under the subparagraph “a” of the second part of the article 210 of Criminal Code of Georgia, which envisages imprisonment from 4 to 7 years.