A recent dialogue between tax authorities and two major jewelry networks revealed systemic practices of splitting businesses to minimize taxes. Officials say firms pledged to unify operations, regularize payroll, and fiscalize sales, but consequences will follow if agreements are not kept.
Two jewelry-store chains announced their readiness to stop splitting the business after talks with the State Tax Service.
This was reported by the acting head of the State Tax Service, Lesia Karnaukh.
“We met with representatives of two large jewelry-store chains. During inspections, there were signs of tax minimization through the splitting of the business. Specifically, at 253 stores, at least 100 individual entrepreneurs who are on the simplified taxation system are conducting activities simultaneously.”
– Lesia Karnaukh
According to the State Tax Service, in 2025–2026 the tax authorities conducted more than 50 inspections, resulting in fines reaching nearly ₴70 million. Among the violations are the absence of cash registers, undeclared labor, and improper accounting of goods.
The State Tax Service noted that the companies agreed to operate through a single legal entity, regularize payroll, and fiscalize their settlements.
Outlook and consequences
The agency stressed that if the agreements are not fulfilled, the response will be appropriate.
According to the State Tax Service, most jewelers operate within the legal framework and comply with the regulations on the use of RRO/PRRO, however a significant portion of business entities declares very low turnover.
These steps aim to ensure market transparency and compliance with the law for all participants.
