VAT carousel fraud: raids in Île-de-France, €60,000 seized
The European Public Prosecutor's Office conducted raids in the Paris region as part of an investigation into alleged VAT fraud worth 13 million euros.
Wave of raids in Île-de-France in investigation into large-scale VAT fraud
The European Public Prosecutor's Office conducted a series of raids on businesses located in the Paris region last Thursday, according to an announcement published on Monday. The operation is part of an investigation into alleged VAT fraud described as "large-scale", reports bfmtv.com.
The investigation targets a so-called "carousel" fraud mechanism, a system exploiting European Union rules applicable to cross-border transactions between member states. This type of arrangement allows its organisers to recover or avoid paying value added tax.
Six people suspected of having participated in the financial management of the companies in question, as well as of laundering the proceeds of the fraud, were questioned by investigators from the National Anti-Fraud Office (Onaf). The raids resulted in the seizure of documents, digital evidence, a luxury vehicle and approximately 60,000 euros in cash.
The estimated fiscal damage amounts to around 13 million euros. The investigation also covers facts of money laundering and participation in a criminal association involving 26 French companies, principally based in Île-de-France.
The suspects are suspected of having set up a network of short-lived companies, without genuine economic activity and designed to evade detection. According to the European Public Prosecutor's Office, these shell companies are believed to have used at least 80 bank and payment accounts to transfer a total of approximately 160 million euros in less than two years.
It was the Directorate General of Public Finances (DGFiP) that had alerted the European Public Prosecutor's Office in August of these suspicions. Operational since 2021 with its headquarters in Luxembourg, the European Public Prosecutor's Office is notably tasked with investigating cross-border VAT fraud within the Union.
Source: Google News FR — Crime (fr)