Operation "Midas": Five arrests over €114 million VAT fraud — investigations also underway in Greece
The European Public Prosecutor's Office coordinated arrests in Cyprus, Germany and Italy over cross-border "carousel" VAT fraud totalling €114 million.
Operation EPPO "Midas": Five arrests in three countries over multimillion-euro tax fraud
Five suspects were arrested during the current week as part of Operation "Midas", according to reports by Ethnos. The operation was carried out on the orders of the European Public Prosecutor's Office (EPPO) bureau in Munich and concerns an investigation into fraud in Value Added Tax totalling €114 million.
The arrests were made in three countries: three individuals were detained in Cyprus, one in Germany and one in Italy. Meanwhile, authorities in Cypriot, Greek and Italian territory conducted targeted raids and proceeded with the seizure of evidence.
The "carousel" fraud method
At the centre of the case is an international criminal network accused of large-scale cross-border "carousel" fraud in VAT. This method exploits European Union provisions that exempt commercial transactions between member states from VAT.
Specifically, the ring was channelling smartphones onto the market through a network of companies and "missing traders" — businesses that register for a short period, collect VAT from buyers and then dissolve without remitting it to the state. The companies in question maintained offices in Germany, Albania and Sweden.
Tax loss of €114 million
From the ring's activities, it is estimated that Sweden suffered a tax loss of €80 million, while Germany suffered a corresponding €34 million — totalling €114 million in losses to the public funds of two EU member states. The investigations remain ongoing, with Greece included among the countries where authorities conducted raids and seizures.
Source: Ethnos