The client of Sokolovskyi and Partners Law Firm, a foreign-owned company, is engaged in the grain production and processing. The company exports agricultural products both grown on its fields and purchased from third parties. In March 2018, the company received a VAT refund in the amount of UAH 4,500,000. And in June, the Prosecutor’s Office initiated criminal proceedings under Article 191 of the Criminal Code of Ukraine “Misappropriation, embezzlement of property or taking possession of property through abuse of office”. The main charge was unlawful receipt the VAT refunds amount from the state by the company. Investigators of the Prosecutor’s Office believed that the company illegally formed a tax credit having purchased agricultural products from another shell company, and further exported agricultural products. As part of those criminal proceedings, three searches were conducted: in the company’s office, at home of the head of the company, and in the company’s production premises, a plant for processing agricultural products. 1,500 tons of grain were seized.
Sokolovskyi and Partners Law Firm’s attorney at law appealed the seizure to the investigating judge, who then resolved to return the property. Later, in October 2018, the criminal proceedings were closed on the application drawn up by our attorneys at law.