Criminal organisation defrauded budget of over 780 million forint in VAT
Tax authority investigators conducted raids at 23 locations against a multi-layered invoicing chain which defrauded the budget of over 780 million forint in VAT through false invoices. Twenty-five people were questioned and five were arrested.
Criminal organisation defrauded budget of over 780 million forint in VAT
Investigators from the National Tax and Customs Authority (NAV) raided 23 locations at dawn against a well-established corporate network that committed several hundred million forint in VAT fraud – according to 444.hu.
According to suspicion, the group issued false invoices for activities that never took place. On paper they recorded construction work, installation, cleaning and IT services, but there was no genuine economic activity behind these. The aim of the multi-tiered chain of interconnected companies was to create the appearance of legitimate tax relief and then return the invoice payments to those who used these documents to avoid paying VAT, by reducing the amounts by commission.
The group's leader ran the operation from a property on Lake Balaton. Investigators found all the documents belonging to the invoice factory, stamps, bank cards and access credentials in an office above the flat. When the man was arrested, it also emerged that he was planning to move the operation to Thailand.
The authorities froze assets worth more than 1.2 billion forint: property and vehicles worth 700 million forint, 63,000 euros and 59,000 Swiss francs in cash, and 315 million forint in bank accounts. They also seized gold pledge notes worth approximately 35 million forint.
A total of 25 people were taken in and questioned as suspects, of whom five were also held in custody. The court ordered their detention at the prosecution's request. The NAV is investigating particularly serious budget fraud committed in an organised manner.
Source: 444