Operation in Bulgaria part of crackdown in nine EU countries against large-scale VAT fraud scheme

Written by on January 15, 2020 in Bulgaria - Comments Off on Operation in Bulgaria part of crackdown in nine EU countries against large-scale VAT fraud scheme

During a day of simultaneous and co-ordinated actions in nine EU countries, judicial and police authorities dealt a blow to a criminal organisation involved in large-scale VAT fraud with the sale of luxury cars, EU agency for criminal justice co-operation Eurojust said.

During the action day, held last week and co-ordinated and led by the French and Romanian desks at Eurojust, 26 persons were interviewed and 33 premises searched in Bulgaria, the Czech Republic, France, Germany, Spain, Latvia, Lithuania and Romania.

In addition, more than 100 000 euro, as well as luxury cars and products, were seized.

Eurojust said that the suspects allegedly set up a VAT carousel for the purchase of luxury cars, buying vehicles on behalf of shadow companies controlled by French citizens. During these purchases, no VAT was paid. The cars were immediately sold in France using false VAT declarations at a much lower price, thereby defrauding the French tax authority.

The estimated amount of lost tax revenue is more than 12 million euro.

The presumed conspirators are suspected of VAT fraud, swindling, forgery of documents, money laundering, criminal activities affecting the financial interests of the EU and participation in an organised criminal group, Eurojust said.

As a result of disclosures from the Public Finances Directorate General (DGFiP), proceedings were conducted by the French National Financial Prosecutor (Paris) and the Investigative Judge of Lyon. The investigations were led by the Judicial Financial Investigation Service (SEJF).

After organising two coordination meetings with all involved countries, Eurojust set up a coordination centre on January 9, supporting the operations through its assistance with the issuance and urgent execution of European Investigation Orders (EIOs) for the identification of bank accounts, account balances, properties and vehicles concerned, as well as two European Arrest Warrants and 51 freezing/seizure orders.

(Photos ©  General Inspectorate of the Romanian Police)

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