Photo: yuz.uz
Uzbekistan’s State Security Service (SGB) has arrested two officials from the country’s Tax Committee on suspicion of falsifying financial reports that enabled the illegal refund of value-added tax (VAT) to 18 companies. The state reportedly suffered damages totaling 82 billion soums—nearly $6.4 million—according to the Telegram channel XAVFSIZLIK.
Investigators allege that the officials manipulated the state’s business stability rating system, artificially inflating the ratings of certain companies to lower their risk profiles. This allowed for the approval of unwarranted VAT refunds.
The suspects are facing charges under Articles 167 (“Embezzlement or Misappropriation”) and 209 (“Official Falsification”) of Uzbekistan’s Criminal Code.
According to the investigation, the tax officials acted in collusion with the management of a limited liability company (LLC), which was connected to the other 17 firms involved. The LLC, which primarily imported timber, received 5.5 billion soums (about $428,000) in improper VAT refunds. The SGB has also arrested the company’s director, its accountant, and two informal managers.
Authorities conducted raids on the homes and offices of the businessmen suspected of orchestrating the scheme. As part of the operation, they seized $79,000 in cash, 161 million soums (approximately $12,500), three LI 9 electric vehicles, two Gentras, one Nexia 3, over 1,000 packs of Terea electronic cigarettes, 27 electronic keys, company seals, computers, and phones.
The criminal investigation is ongoing.
