Tax evasion of €25 million at Pizza Fan: 23 arrested, 2,500 workers in limbo
23 arrests for €25 million tax evasion at Pizza Fan chain, with 110 outlets closed and 2,500 workers left without information.
Tax evasion scandal at Pizza Fan unsettles 2,500 workers
Felony charges against 23 arrested individuals — including the owner and senior executives — were announced by authorities following the exposure of a €25 million tax evasion scandal at Pizza Fan chain. According to Ethnos, the sudden suspension of operations at 110 outlets nationwide has left more than 2,500 workers in uncertainty.
"Tips" and invisible orders at the centre of investigation
At the centre of investigative efforts are recorded conversations captured by police wiretaps that document, according to authorities, a parallel circuit of "invisible" transactions. The central term recurring in the dialogues is "tips" (κεράσματα): orders that were not registered with the tax authority.
In one of the recorded conversations, reference is made to a target of 15–20% parallel turnover per outlet. A ceiling is also set at "maximum 2 per month for each delivery driver" and a limit of €40 per order value that is not declared for tax purposes.
Revealing is also an incident involving a customer who complained because they did not receive a receipt and threatened legal action. According to the conversations, the internal instruction was to give him credit ("two pizzas") and to inform him that "the receipt was issued but lost by the delivery driver". When the customer asked for a new one to be issued, the answer given was categorical: "We cannot issue it… it is yesterday's order and it is a tip".
In other conversations, a company executive appears to acknowledge that the business paid VAT quarterly and that when "tips decreased" a higher tax liability would result — an element which, according to authorities, strengthens the picture of systematic concealment of taxable income.
From complaint of labour violations to tax investigation
The case began, according to information presented by Ethnos, from a complaint that reached the Financial Police approximately six months earlier. The initial complaint concerned violations of labour law — particularly in the area of social security contributions — and non-payment of the full amount of VAT. The expansion of inspections ultimately led to the exposure of the wider tax evasion scheme.
Workers learned of closure from television
The 110 restaurants in question remain closed throughout the country. Many workers — delivery drivers, grill operators and kitchen staff — state that they received no official notification and learned of the closure from television news bulletins or the internet.
The company's telephone switchboard has been seized as part of the investigation. The recorded message that customers hear states that "our outlets remain temporarily closed due to a technical issue".
Ministry of Labour: Employer must pay wages
A spokesperson for the Labour Ministry, Mr Karagkounis, emphasised that no contracts have been terminated thus far and that the employer is obliged to meet his obligations to workers, including wage payments. The Independent Labour Inspection Authority is monitoring the case and will inspect compliance with labour law.
Karagkounis noted that matters concerning potential asset seizures and business operations fall within the remit of investigative and supervisory authorities, including the Money Laundering Authority. If payments cease, the law provides procedures for granting unemployment benefits, if legal conditions are met.
Separately, according to a legal interpretation presented publicly, the company remains liable for wage payment due to employer "default". The extensive franchise network and connection to central information systems further hinder the restart of even some outlets.
Company: Priority is continuation of operations
The company has stated that its priority is the maintenance of operations and the resolution of any outstanding tax matters. Workers, however, are seeking answers regarding accrued and future wages, whilst authorities are examining support measures as investigations continue.
Source: Ethnos