Thursday, December 1, 2022

Center for Social and Economic Research: Ukraine loses up to $17 billion per year to tax avoidance

by The Kyiv IndependentNovember 23, 2021 2:49 am

A new study by the Center for Social and Economic Research found that the Ukrainian budget loses out on $10-17 billion each year due to tax optimization and evasion schemes.

Additional payments made outside of one’s official salary, commonly referred to as payments “in envelopes,” are the top way to evade taxes. Each year, up to $11 billion in additional payments are paid in envelopes, causing budget losses of up to $5.8 billion.

Smuggling is in second place, causing losses of up to $4.6 billion. Offshore schemes, practiced by companies and high net-worth Ukrainians, are in third place, accounting for losses of up to $1.3 billion.

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