Fraud Scheme Involving VAT Refund Exposed in Tashkent

Tashkent, Uzbekistan (UzDaily.com) — Officers of the State Security Service and the Department for Combating Economic Crimes under the General Prosecutor’s Office have uncovered a case of fraud related to the illegal refund of value-added tax (VAT).

A former tax authority employee, currently working as an accountant at a transport and logistics limited liability company in Tashkent, demanded US$35,000 from a manufacturer of paints and coatings through his former colleagues. In return, he promised to facilitate the return of 17 billion UZS in negative VAT balance and the reactivation of a suspended VAT taxpayer certificate.

During an operational action, the suspect was caught in the act while receiving US$20,500 from the company’s founder. Physical evidence confirming the crime was seized at the scene.

A criminal case has been opened under Articles 168 (Part 4, Clause “a”) and 28, 211 (Part 3, Clause “a”) of the Criminal Code of the Republic of Uzbekistan.

Preliminary investigation revealed that the accused intended to “resolve the matter” through a senior inspector of the Tax Committee, who has also been included as a suspect in the criminal case.