EPPO: Five arrests in €114 million VAT carousel fraud – Investigation extends to Greece
Three arrests in Cyprus, one in Germany and one in Italy as part of EPPO investigation into cross-border VAT fraud totalling €114 million.
Five arrests in €114 million VAT fraud – EPPO extends investigation to Greece
According to Newsit.gr, five suspects were arrested this week as part of Operation Midas, conducted under the direction of the European Public Prosecutor's Office (EPPO) based in Munich, into VAT fraud totalling €114 million.
Three of those arrested were found in Cyprus, one in Germany and one in Italy. Simultaneously, searches and seizures were also conducted on Greek territory.
The carousel scheme and tax damage
The criminal organisation under investigation is suspected of cross-border carousel VAT fraud – a sophisticated scheme that exploits EU rules governing transactions between member states, which are exempt from VAT.
Members of the organisation sold smartphones through companies that disappeared before paying the owed tax. These companies were based in Germany, Albania and Sweden. The estimated tax damage amounts to €80 million for Sweden and €34 million for Germany.
The arrested individuals are believed to have organised and controlled the fraud scheme.
Twelve searches, asset freezes and seizures
With the assistance of national authorities from Cyprus, Germany, Greece and Italy, 12 searches were conducted at the premises of suspects and companies. Bank accounts valued at up to €80,000 were frozen, whilst vehicles and property were seized in Cyprus, Greece and Italy.
Greek services participated in the operation: the Sub-Directorate of Digital Forensic Investigation and Analysis, as well as the Sub-Directorate for the Prosecution of Economic Crime of the Directorate for Combating Organised Crime. Their participation forms part of cross-border cooperation in investigating the financial activities of the network.
All persons involved are presumed innocent until their guilt is proven by the competent German courts.
The EPPO is the independent public prosecution office of the European Union, responsible for investigating and prosecuting crimes against the financial interests of the EU.
Source: Newsit.gr