- The European Public Prosecutor’s Office (EPPO) dismantled a criminal network involved in unprecedented VAT fraud during the week of November 25, 2024.
- Europol supported the operation alongside law enforcement agencies from sixteen countries.
- Over 400 companies are suspected of participating in VAT fraud related to electronic product trade, with an estimated VAT loss of around €297 million.
- The investigation revealed that the suspects established companies in fifteen EU member states, selling nearly €1.5 billion worth of popular electronic devices online.
- Customers paid VAT, but the companies did not remit it, while some companies fraudulently claimed VAT refunds from tax authorities, transferring the proceeds to offshore accounts.
- The EPPO suspects the fraud network laundered proceeds from drug trafficking, investment fraud, and various forms of cybercrime, with possible connections to Russian organized crime.
- Evidence suggests that these groups injected resources into the criminal operation in exchange for periodic payments and exerted influence over its management.
- More than 300 searches were conducted in sixteen countries, resulting in the arrest of 32 individuals from Estonia, Latvia, and Lithuania, with three still in custody.
- The Dutch Fiscal Intelligence and Investigation Service (FIOD) participated in the operation, but the role of the Dutch Tax Authority’s investigation service remains unclear.
- Authorities seized a large quantity of smartphones and electronics valued at nearly €48 million, along with luxury cars and almost €127,000 in cash.
- Additionally, 62 bank accounts holding over €5.5 million were frozen, with preliminary results subject to change in the coming days.
Source: taxlive.nl
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
