Mass Inspections in the Pharmaceutical Industry Farmak Darnytsia Arterium

     Tax authorities added over UAH 234 million; State Audit Office intensifies oversight of public procurement

In 2025, Ukraine’s pharmaceutical industry came under dual pressure from regulatory bodies. The State Tax Service (STS) has significantly ramped up audits, resulting in over UAH 234 million in additional tax assessments for leading pharmaceutical companies. At the same time, the State Audit Office has expanded checks on public procurement entities, including within the pharma sector.

Tax audits and their consequences:     
In 2025, STS plans over 4,700 audits — almost 1.5 times more than last year. Large and medium-sized companies and private entrepreneurs are under special scrutiny. Authorities are reviewing not just tax compliance, but also labor and currency law adherence. The audit period now exceeds six years due to the wartime suspension of the statute of limitations. Over UAH 234 million has already been reassessed. Serious violations trigger referrals to law enforcement, resulting in criminal proceedings, searches, and account freezes.

Parallel checks by the State Audit Office:     
Alongside tax pressure, the State Audit Office is intensifying control over public procurement. In 2025, the Cabinet expanded its powers: auditors can now conduct checks not only for routine reasons but also if there’s a justified need — for instance, splitting procurements to avoid open tenders or failing to use e-catalogues or localization rules. In just the first 5 months of 2025, the Eastern office conducted 289 monitoring reviews and 34 procurement inspections.

Searches and criminal proceedings:    
Amid the audits, law enforcement also searched leading companies like Farmak, Darnytsia, and Arterium. Investigations involved documents related to distributor partnerships. Company representatives emphasized transparency and cooperation with authorities, but the searches show the government’s serious approach to compliance enforcement.

Additionally, the Prozorro system now includes new risk indicators (“red flags”) to automatically identify suspicious procurements. This helps auditors react faster and reduce corruption risks.

Recommendations for pharmaceutical businesses: 
Given the increased scrutiny, pharmaceutical companies and public buyers should proactively prepare — conduct internal audits and consult legal professionals. WINNER Law Firm has deep experience supporting audits, appealing STS findings, unfreezing accounts, defending businesses in criminal cases, and advising on procurement.

Conclusion:
Mass audits, tax surcharges, searches, criminal cases, and tighter procurement controls — this is the new norm. Businesses must be proactive, compliant, and legally protected.
👉 Find the video lecture below by Maksym Bahniuk, Head of Tax & Customs Practice, on how to act during inspections.