Bastrykin puts tax losses prevented by VAT crackdown above 500 billion rubles

Dismantling a paper-VAT operation prevented potential future budget losses exceeding 500 billion rubles, Russian Investigative Committee chairman Alexander Bastrykin told RIA Novosti.

The operation was stopped in Moscow in April. Investigators allege that its participants created four thousand fictitious legal entities and sold false invoices. They estimate that the budget had already missed out on more than one trillion rubles in tax revenue.

Bastrykin’s 500-billion-ruble estimate concerns further tax revenue that could have gone unpaid had the operation continued. He presented that estimate as a consequence of shutting it down.

The alleged organiser, Alexander Osin, was detained in Belarus. His detention in Minsk was reported in July. Bastrykin said his extradition to Russia remains under consideration.