Court orders BEB to investigate possible tax evasion by VEVI service

Court ruling on investigation of tax violations

The investigating judge of the Perechyn District Court in Zakarpattia Oblast issued a ruling obliging the Bureau of Economic Security (BEB) to enter information into the Unified Register of Pre-trial Investigations regarding possible tax evasion. This requirement concerns the activities of the electric scooter rental service VEVI.

Public appeal and position of the applicants

On 30 September, the public organisation “Anticorruption” appealed to the BEB with a report that the VEVI service operates through a network of 23 sole proprietors. According to the applicants, this structure was artificially created to distribute income and reduce tax liabilities.

It is noted that all these entrepreneurs use a common brand, website, mobile application, single registration system, tariffs, and payment methods.

Law enforcement reaction and court assessment

Initially, the Bureau of Economic Security refused to enter information into the ERDR, citing a lack of sufficient data on specific tax evasion. However, the court took a different position. It was decided that the totality of circumstances, including shared infrastructure, the contractual model, and payment operations, is sufficient to initiate a pre-trial investigation under Article 214 of the Criminal Procedure Code. The qualification of the offence will remain with the detective.

Ownership structure and key figures

The director and 100% owner of LLC “VEVI” (registration number 44884723) is Viktor Oleksandrovych Zhulkanych. The company was registered on 4 July 2022 in the village of Storozhnytsia in Uzhhorod Raion, address: 111a Peremohy Street. Viktor Zhulkanych is also the owner of the “vevi” trademark. In the service’s public contract, he appears as the lessor (sole proprietor), and LLC “VEVI 21” is also registered in his name.

Geography of operations and political connections

The service operates in Uzhhorod, Ternopil, Vinnytsia, Khust, Volochysk/Pidvolochysk, Kamianets-Podilskyi, and other cities. Among the sole proprietor partners listed in the contract is Vitaliy Hlahola, a deputy of the Uzhhorod City Council. In 2020, he was elected to the city council on the list of the regional party “Ridne Zakarpattia,” founded by MP Robert Horvat.

Position of local authorities

Previously, the Uzhhorod City Council stated that no contract was signed with the VEVI operator, no parking spaces for scooters were designated, and no payments for the use of urban space have been received into the budget.