Bulgaria's Sopharma CEO Ognian Donev Charged with BGN 63 M Tax Evasion

The Sofia City Prosecutor's Office has submitted an indictment against Ognian Donev, CEO of pharmaceutical company Sopharma and former Chair of the Confederation of Employers and Industrialists in Bulgaria (CEIBG), for large-scale tax evasion.

Donev faces charges of tax evasion to the tune of BGN 62 779 725 committed in April 2007 in his capacity of CEO of Elpharma AD.

In his annual income tax declaration under the Corporate Income Tax Act he failed to declare an increase in the annual financial result worth BGN 418 531 500.

The increase in the annual financial result of the company was generated through seven transactions in shares concluded outside the regulated market of the Bulgarian Stock Exchange-Sofia (BSE-Sofia) and with related parties.

According to reports of investor.bg, the indictment for tax evasion worth nearly BGN 63 M comes after a three-year investigation.

Boris Borisov, CEO of Telso AD and CFO of Sopharma, faces charges of tax evasion worth BGN 7 483 105, 19, according to a media statement of the prosecuting authority.

In his annual income tax declaration under the Corporate Income Tax Act he failed to announce an increase in the annual financial result totaling BGN 74 831 051, 94.

In 2012 Donev was charged with money laundering.

Donev and his partner Lyubomir Pavlov, owners of the Media Group Bulgaria Holding, then-publisher of mass circulation dailies 24 Hours and Trud, faced charges of money laundering and document fraud.

In March 2013 the Sofia City Prosecutor's Office terminated the money laundering probe of the majority owners of the Media Group Bulgaria Holding.

The prosecutors failed to find evidence of money laundering accomplished via the sale of shares.