EPPO investigation into €46.9 million VAT fraud scheme involving Cypriot companies
The European Public Prosecutor's Office is investigating a carousel fraud network in the electronics trade, with losses exceeding €46 million in unpaid VAT. Companies incorporated in Cyprus are implicated in the scheme.
EPPO investigation into €46.9 million VAT fraud scheme involving Cypriot companies
The European Public Prosecutor's Office (EPPO) is investigating an international tax fraud network in the electronics sector, with resulting damage to public funds estimated at at least €46.9 million from unpaid value-added tax.
According to reporting by Politis, which cites sources of the Cyprus News Agency, Cyprus's involvement in the operation has remained limited so far. Specifically, no domestic investigations, seizures or other investigative procedures have been carried out on the island.
The main part of the operation unfolded in Greece, where the authorities proceeded with inspections and seizures. Cyprus assisted through cross-border judicial and police cooperation, providing information and exchanging data with the other involved member states.
Information from persons familiar with the case indicates that the preliminary examination lasted considerable time. During this period, the involved states exchanged data and submitted requests to one another before reaching operational actions on Greek territory.
In its official statement, the EPPO speaks of corporate entities that had been incorporated in Cyprus and were part of the wider network. However, it is clarified that no responsibility is attributed to the state of Cyprus. The investigation is ongoing and all suspects are presumed innocent.
Beyond the €46.9 million, the authorities are examining additional indications of amounts in the region of €24.2 million that may not have been paid or were declared incorrectly. The possibility of future activation of the Cypriot authorities cannot be ruled out, should the course of the investigation make it necessary.
Source: Politis