Tax Evasion Schemes in Belarus: A Closer Look
Authorities have pinpointed specific zones showing a higher degree of restrictive surveillance
In an informal chat, Vladimir Mukvich, the deputy minister of taxes and levies, shed light on the prevalent tax evasion techniques in Belarus, as reported by Myfin.by.
Commander-in-Chief of Tax Cheats
From the hidden corners of businesses, Mukvich named the most notorious tax evasion strategies:
- Cloaking the Taxable Base: Manipulating records to decrease the taxable income.
- Lackadaisical VAT Payments: Undermeasuring VAT payments or failing to pay VAT altogether.
- Inflated Expenses: Claiming expenses beyond reasonable limits, such as paying for a snow-removal service on a sunny day.
- Business Carving: Splitting businesses into smaller entities to dodge taxes.
- Legal Entity Makeover: Establishing a new company or branch with the sole purpose of tax avoidance.
- Perks Galore: Granting unwarranted benefits to employees or associates.
Sneaky entrepreneurs often employ more than one method to dodge their tax obligations.
Under the Scanner
Mukvich singled out several sectors under intense scrutiny: taxi, medical services, internet, real estate services, gambling, alcohol and tobacco trading, and others.
"Many business entities underestimate our resolve," Mukvich asserted. "We're determined to expose their scheming ways and make sure they contribute their fair share to the budget."
The taxi sector heads the list of industries harboring the most violations. For instance, in 2025, the MNS (Ministry of Natural Resources and Environmental Protection) discovered 166 violators evading Br1.4 million in revenue from ad sales on social networks within a span of 4 months.
While specific tax evasion schemes in Belarus, as reported by Myfin.by, are scarce after 2023, common tax evasion strategies prevalent in many countries may offer a glimpse into their Belarusian counterparts. These include underreporting income, overstating expenses, using shell companies, misusing VAT, and false invoicing.
Staying informed about local news and regulatory changes is crucial, as tax evasion tactics can evolve over time. For updated, country-specific details on tax evasion schemes in Belarus, consult the latest publications by Myfin.by or official Belarusian government sources.
Businesses in Belarus employ various strategies to evade taxes, such as cloaking the taxable base, lacking VAT payments, inflating expenses, business carving, legal entity makeovers, and granting unwarranted benefits. To combat these schemes, the government is diligently scrutinizing sectors like taxi, medical services, internet, real estate services, gambling, alcohol and tobacco trading, and others, ensuring that these enterprises contribute their fair share to the national budget.
