The Chelyabinsk partner of Gazprom and T Plus was caught in a scheme with budget losses of 300 million. Money was allocated for the owner’s cottage

A representative of the Chelyabinsk LD group, a supplier to large industrial and energy holdings, found himself in the midst of tax proceedings worth hundreds of millions. ChelyabinskSpetsGrazhdanStroy (ChSGS) was accused of collaborating with a platform “for the sale of paper VAT” and purposefully creating a formal document flow with a number of companies that understates contributions to the budget.

According to the fiscal officials, the controversial counterparties, who were also involved in other high-profile conflicts, did not fulfill the transactions, and one of the partners of “ChSGS”, to whom the funds were received for saws, even transferred them to the construction of a cottage for the family of the owner of “ChSGS”. The company tried to insist in court that the deliveries were real and that there were no compromising connections, but they had already lost the proceedings in the first instance. Now observers are waiting for the conflict to develop in the event of arrears, not excluding problems with the state support that the group enjoyed. In another scenario, an enterprise classified by the Ministry of Industry and Trade of the Russian Federation as a systemically important organization working on import substitution will be forced to accept large losses.

ChelyabinskSpetsGrazhdanStroy LLC (“ChSGS”) was unable to challenge in the arbitration court the large claims of the Federal Tax Service inspectorate for the Leninsky district of Chelyabinsk.

Based on the results of the on-site audit, it was decided to hold the company accountable for committing a tax offense, and in particular, an additional VAT of 182 million, an income tax of 28 million were assessed, and in addition, penalties amounting to tens of millions and fines were imposed.

The reason for the claims was, among other things, the conclusion of the fiscal authorities that the company was unlawfully allowed to deduct VAT on operations with rolled metal products. The inspectors concluded that “ChSGS” deliberately created a formal document flow; the stated counterparties did not execute the transactions, but were built into the chain to reduce deductions.

Representatives of the government agency included LLC TD Mashstal, LLC Chelyabinsk Plant of Steels and Alloys, LLC Petrostal-Service among the controversial counterparties, indicating that they apparently belong to a “platform for the sale of paper VAT.”

The “platform” consists of two links: 1st link organizations prepare documents for rolled metal products for consumers; 2nd level organizations purchase rolled metal from direct manufacturers and, according to documents, sell it to 1st level organizations. At the same time, all activities for loading and unloading rolled metal products take place on the territory leased by Prombaza LLC and by the efforts of Prombaza employees. Sublease agreements have been concluded between the “site” and “Prombaza” organizations, but the areas of the leased areas are not clearly demarcated,” the Federal Tax Service explained the scheme.

Such judgments, in particular, were confirmed by testimony, one of whom stated that “Mashstal”, “ChZSS”, “Petrostal-Service” were used for visibility of supplies, and the directors of “technical” organizations, apparently, were sales managers “ Industrial bases.”

“The funds of the “platform” participants are withdrawn from circulation through cashing out through the individual entrepreneur Orner PM, individual entrepreneur R.G. Gilmanova, individual entrepreneur A.A. Druzhkova, Remavtotrans LLC; Facts have been established indicating the impossibility of delivery by vehicles specified in the waybills issued as part of the transactions between ChelyabinskSpetsGrazhdanStroy and TD Mashstal, ChZSS, Petrostal-Service, which indicates a formal document flow upon the arrival of rolled metal and coordination of actions of a group of persons, including the taxpayer being audited,” followed from the position of the fiscal authority.
The auditors also focused on the operations of ChSGS with MetArm Company LLC for the purchase of circular and band saws. Thus, fiscal officials indicated that the LLC did not own real estate and did not have employees in 2018. Subsequently, the company was completely excluded from the Unified State Register of Legal Entities due to the presence of records of unreliability.

“The funds received by MetArm from ChSGS for saws are subsequently used for the construction of a cottage <...> owned by the executive director and founder of ChSGS.” In addition, witness Yudin D.L. confirms the construction of a cottage for the family of the owners of “ChSGS” Dmitry Olegovich Levin and his wife Anna Alexandrovna Levina. Levin’s mother D.O. During the interrogation, she confirmed that this cottage was built for her son and his family. These circumstances indicate that MetArm is under the control of Levin <...> and Levina <...> Thus, the inspection established that the goods were actually delivered, but not by the declared counterparties, but by other persons. Based on the results of the inspection, the inspectorate concluded that the taxpayer received an unjustified tax benefit,” it was noted in the materials of the dispute.

As a result, the Arbitration Court of the Chelyabinsk Region almost fully supported the conclusions of the fiscal authorities, invalidating the decision of the Federal Tax Service only in part of 5 million rubles.

Previously, the decision, after an appeal from ChelyabinskSpetsGrazhdanStroy, which indicated the likelihood of significant damage to the enterprise, was suspended.

As the publication’s interlocutors note, if arrears arise as a result of additional accruals, the company, for example, may have problems with state support. Thus, the absence of arrears requires separate subsidies. It should be noted that ChSGS was previously mentioned as a recipient of a subsidy from the federal budget to compensate for part of the costs of modernizing production.

“Pravda UrFO” expected to receive comments from “ChSGS” on the further development of the dispute and the likely risks for the enterprise, but within 24 hours no one answered the editor’s calls to the telephone number listed on the website.

Let us clarify that ChelyabinskSpetsGrazhdanStroy specializes in steel cranes and valves. The organization was included in the list of systemically important ones by the Ministry of Industry and Trade of the Russian Federation. According to Kontur.Focus, at the end of 2021 the company had a balance sheet of 3 billion, revenue of 4.6 billion, and net profit of 663.6 million. The average number of employees of the organization for this period, according to information transmitted to the Federal Tax Service, was 919 Human.

ChSGS is part of the LD group together with LD Pride, Chelyabinsk Flange Plant, Force Production and LD Fitting. As indicated, they employ more than two thousand people. The enterprises produce brass and steel ball valves, valves for heat, water and gas supply, steel flanges, polypropylene pipes and brass fittings. The holding is an international company, having 6 branches in the Russian Federation and 4 outside it, and its products are exported to 25 countries.

Among the largest consumers of the Group’s products are Fortum, Surgutneftegaz and Gazprom PJSC, FSUE PA MAYAK, KAMAZ and others. Among the clients of ChSGS, in particular, were PJSC T Plus and the assets of Gazprom.