ARKHANGELSK, August 9 - RAPSI. Arkhangelsk City Duma Deputy Yuri Sukhanov has been accused of tax evasion amounting to more than $1.7 million, according to the Arkhangelsk Region Prosecutor's Office

The firm which is headed by Sukhanov reduced the amount of VAT subject to be paid to the budget for the aforementioned sum.

Investigators say that Sukhanov entered false information on accounting statements and tax returns about repairs carried out on residential buildings by subcontractors.

These works were in fact carried out by companies established by Sukhanov himself and they are not subject to pay VAT.

The suspect faces up to six years in prison. He has pleaded not guilty.