The Uzhhorod City-District Court has closed criminal proceedings against Mykhailo Svyda, the former head of Zakarpattia Customs, who was accused of large-scale tax evasion. The former official constructed multiple residential complexes in Uzhhorod and concealed nearly 38 million UAH in cash profits from tax authorities. However, he avoided imprisonment by fully reimbursing the damages to the state prior to prosecution.
According to investigation details from the Bureau of Economic Security (BEB) and the Zakarpattia Regional Prosecutor’s Office, Mykhailo Svyda collaborated with local housing cooperatives to oversee the construction of four residential phases in Uzhhorod between 2021 and 2025. The completed development comprised 272 apartments covering over 13,100 square meters.
A significant portion of the newly built real estate was registered directly to Svyda and his family members, including hundreds of square meters of living space and private parking spots. The remaining units were sold to private buyers. Investigators found that Svyda systematically collected cash payments from prospective homeowners totaling 37.77 million UAH over three years.
None of these payments were disclosed in tax declarations or supported by official legal agreements filed with fiscal authorities. As a result of the hidden income, the state budget lost 6.8 million UAH in Personal Income Tax (PIT) and 612,000 UAH in military tax levy, amounting to over 7.41 million UAH in unpaid tax obligations.
The legal developments unfolded rapidly following the conclusion of the investigation. Just days before law enforcement officially served him with a notice of suspicion, Mykhailo Svyda settled his entire 7.41 million UAH tax debt via ten separate bank transfers. The State Tax Service in Zakarpattia region confirmed the full receipt of funds on the day the notice of suspicion was issued.
«The suspect fully admitted guilt, cooperated with investigators, and exercised his statutory right to exemption from criminal liability upon complete reimbursement of damages before trial,» the court records state.
Given that Svyda had no prior criminal record and fully compensated the financial damages caused to the state, the court dismissed the case under Part 2 of Article 212 of the Criminal Code of Ukraine. The decision remains subject to appeal in the Zakarpattia Court of Appeal within seven days of its announcement.