Although tax agencies received and analyzed Yukos accounting reports every year, back taxes to the sum of $3.4 billion were only discovered after a visiting check. Mr. Shulgin put this down to the fact that companies featuring in the case are scattered all across Russia, and therefore, tax agencies could not have the entire picture when receiving accounting reports.
The deputy minister also argued that Yukos knew only too well about all the risks involved. "During the inquiry, investigators confiscated a note written by a prominent lawyer, who is participating in the trial against us today. The five-page note described in detail all the risks of using offshore schemes," the minister said to the Gazeta newspaper. The scheme included organizations enjoying tax breaks, which were presented as profit recipients. The companies used tax breaks illegally. But most importantly, these were the profits of Yukos, which is registered in a completely different federation member. Therefore, there is no doubt that the tax breaks were used illegally."
Mr. Shulgin pointed out how unprecedented the litigation was: "the trial is very hard and prolonged, it is the hardest trial we've ever had."
When asked where else tax evasion schemes were applied, Sergei Shulgin said that the non-ferrous metal sector and the coal mining industry used these schemes. There is every reason to believe that the chemical industry is very actively using such schemes. "But if I have not named anybody in particular, it does not mean that they do not use them."
