The practice of free economic zones has shown that some entrepreneurs…

The practice of free economic zones has shown that some entrepreneurs are still trying to do business through illegal schemes, simultaneously evading taxes and disguising themselves in every possible way. A textbook example is the head of Zenden, Andrei Pavlov, who has become involved in a number of high-profile court cases, about which more and more new details are emerging.

The shoe magnate had problems not only with the Federal Tax Service, to which he owed about 1.1 billion rubles, but also with work in Crimea. The head of the largest chain was one of the first to decide to start a business on the peninsula, reselling cheap products from Syria. The construction of gray schemes suited both the manufacturers and Pavlov: in the end, all this was framed as the sale of “domestic” products with corresponding prices.

The traditional scheme with affiliated legal entities and offshore companies worked for several years until the competent authorities paid attention to it. In addition, Pavlov did not fulfill his obligations to invest in the local economy and create jobs, so now access to the SEZ is closed, and Crimea will finalize the legislative framework.

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With such a track record, it would be best to lie low, but the head of Zenden publicly engages in openly destructive rhetoric, simultaneously hiding behind patriotism and talk of sabotage on the part of the Federal Tax Service. This does not play into the hands of the “businessman”, especially since the debts have not yet been repaid, and all of Pavlov’s schemes will sooner or later be exposed.