VAT fraud network: Two businessmen and two accountants arrested
An investigation by the Internal Affairs Service uncovered a network of companies engaged in the sale of electronic goods within the EU without tax remittance. The illegal gain is estimated at €46.9 million.
VAT fraud network: Two businessmen and two accountants arrested
An investigation by the security authorities led to the identification of four individuals allegedly involved in a scheme of cross-border tax fraud. These comprise two businessmen and the same number of accountants, aged between 51 and 55 years old. The preliminary investigation commenced following an order issued by the Greek office of the European prosecutorial authorities.
According to the Ministry for Citizen Protection, during the period 2021–2025 a multinational network of companies operated in Greece and abroad. These companies traded electronic products within the European Union, however, without paying the corresponding value added tax. At the same time, they submitted applications for VAT refunds that had not previously been paid.
The alleged organisers of the operation, together with their collaborators in the accounting field, are said to have processed numerous transactions via shell companies. These companies had no genuine economic activity, but were established exclusively to accumulate tax obligations which they subsequently concealed. The aim was twofold: on the one hand to carry out intra-EU purchases without VAT payment, and on the other to issue fraudulent tax documents that would reduce or eliminate debts to the Greek state.
The financial benefit obtained by the group is calculated at least €46.9 million from unpaid intra-EU VAT amounts. Additionally, evidence emerged of a further €24.2 million in taxes that either were never declared, were declared falsely, or were unlawfully offset.
During the course of investigations at homes and business premises, police officers seized electronic equipment, files containing accounting data, €99,000 in cash, and three vehicles. Particular importance attaches to the seizure of digital assets carried out by the specialist digital forensics unit of the Hellenic Police. Using advanced techniques, cryptocurrencies worth approximately €900,000 were identified and seized, as well as other digital assets with a total value of €4.5 million. The Ministry for Citizen Protection characterises this seizure as the largest ever made at national level.
The operation was also assisted by the competent authority for combating money laundering, which contributed to the identification and freezing of bank accounts in other European Union countries.
Source: Newsbeast