Where can I get additional funds to fill the budget?
Posted: Tue Jun 17, 2025 9:39 am
Experts from the Economic Expert Platform and the Institute of Socio-Economic Transformation conducted a comparative analysis of the fiscal effect of the use of tax evasion/avoidance tools in Ukraine in 2023 [1] . One of the conclusions drawn by analysts is that the level of the shadow economy is currently about 32%, which is a natural response of the economy to excessive tax pressure. Unlike most other countries, in Ukraine the vast majority of tax revenues are lost due to the most large-scale tax evasion tools and aggressive tax planning, which are massively used by large and ultra-large companies that dominate the domestic economy and, thanks to their informal connections, have great special database opportunities for tax avoidance.
What are the largest tax evasion and avoidance schemes operating in Ukraine?
Smuggling and grey imports
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The largest schemes are related to smuggling and other violations of customs rules. The goal of the schemers is simple - to move goods or other valuables, limited in circulation, across the customs border of Ukraine in such a way as not to pay customs payments or to minimize them. One of the ways to achieve this goal is to hide goods from customs control: understating the customs value, weight, quantity, characteristics and quality of the goods, changing the codes or subcategories of the goods by manipulating the data of reporting, permitting and accompanying documents, etc. Another way is to move certain material values out of customs control (the so-called black smuggling).
What are the largest tax evasion and avoidance schemes operating in Ukraine?
Smuggling and grey imports
Read also
We earn our money when we sell the business. Interview with the co-owner of the Dairy Alliance
Format competition. Will e-commerce and convenience stores displace large supermarkets?
Billion-dollar losses, transit restoration and port digitalization. Interview with the head of the USPA
The largest schemes are related to smuggling and other violations of customs rules. The goal of the schemers is simple - to move goods or other valuables, limited in circulation, across the customs border of Ukraine in such a way as not to pay customs payments or to minimize them. One of the ways to achieve this goal is to hide goods from customs control: understating the customs value, weight, quantity, characteristics and quality of the goods, changing the codes or subcategories of the goods by manipulating the data of reporting, permitting and accompanying documents, etc. Another way is to move certain material values out of customs control (the so-called black smuggling).