GNR detains six people in VAT fraud scheme

in News · 14-07-2020 16:00:00 · 1 Comments

GNR detained six people and accused 18 commercial companies and 32 people in an operation to dismantle a transnational VAT fraud scheme in the food trade.

In a statement released by the GNR revealed that 135 search procedures were carried out in Portugal and seven in Spain, in which various accounting documents and records were seized, as well as around 20 thousand Euros in cash and jewels worth around 45 thousand Euros .

After the first judicial interrogation, one of the defendants was in preventive detention and the rest were required to periodically present to the authorities and prohibit contacts between all.

The organised fraud scheme, based on the creation of “ghost” companies and fictitious billing circuits, aimed at avoiding VAT payments and obtaining undue refunds, “using fraudulent use of the VAT regime in intra-Community transactions”, refers to the note.

This scheme, known as “carousel fraud”, involving the main national wholesalers in the sector, consisted of “simulating intra-Community transfers of goods, as if they were sales to the Community market, but which, in reality, were transacted in national territory, focusing on beverages, alcoholic and non-alcoholic, and food goods”.

These sales “simulations” for the community market were complemented by the creation of a subsequent formal circuit of companies completely fictionalised, both abroad and in Portugal, which included several 'missing traders' operators in the national territory, which issued fictitious invoices which contained VAT, a tax never delivered to the State and, thus, allowed some of these wholesalers to obtain an artificial VAT credit, the amount of which, in some cases, was requested from the Portuguese State in the form of a refund request.

"In addition to defrauding the Portuguese State, the goods were placed on the market below the cost price, generating unfair competition between operators and serious adulteration of the national market in these sectors", says the GNR.

The criminal organisation achieved with the fraudulent scheme at least 4.2 million Euros, with the suspects indicted for crimes of qualified tax fraud, fraudulent introduction into qualified consumption, criminal association, money laundering, active and passive corruption, malfeasance and denial of justice.


Comments:

There is a basic flaw in Portugese VAT schemes.Let us say that there are 2 Thieves - Savio Noronha (Thief 1 ) and Anthony Monserrate (Thief 2)

Thief 1 sells 100000 bottles of beer to Thief 2, at 5 USD a bottle- to be paid for in 30 days. In reality,there is NO SALE and Savio (Thief 1 ) has sold the beer, in the black market.

Thief 2 (Anthony) exports the beer to someone in Frankfurt at 6 USD a bottle - but in reality, THERE IS NO EXPORT (it is a paper transaction by bribing customs or exporting something less or something ELSE).

Now Anthony claims VAT REFUND ON THE EXPORT

A simple flaw in the Portugese VAT law and process is that - Anthony should NOT be allowed to export UNTIL there is a ELECTRONIC PROOF OF VAT PAID ON PURCHASE OF BEER TO THIEF 1 (SAVIO).

2ndly,if the VAT on sale of beer by Thief 1 (Savio) is not COLLECTED by Thief 1 in 45 days, the BEER SHOULD SHOULD BE RETURNED OR VAT PAID - and the BURDEN has to be on Thief 1 (Savio)

Thirdly, NO VAT REFUND CLAIM BY THIEF 2 (Anthony) IS TO BE ,EVEN ADMITTED ,BY THE STATE - UNLESS THERE IS A E-TRAIL OF VAT CREDIT BY THIEF 2 TO THIEF1 AND THAT THIEF 1 HAS PAID THE VAT (on domestic sale) to the STATE

Lastly,the VAT REFUND should be PAID TO THIEF 2 ONLY AFTER THE AUDIT OF THE VAT TAX PAID FROM THIEF 2 TO THIEF 1 AND FROM THIEF 1 TO THE STATE (AS THE VAT SOFTWARE CAN BE HACKED/COMPROMISED TO MAKE A CREDIT TO PARTY A - TO BE PUT INTO THE ACCOUNT OF THIEF 1 )

If all the above are done - NO VAT EXPORT SCAM CAN TAKE PLACE ! However, black marketing of products will NOT stop.dindooohindoo

By samir sardana from Other on 02-05-2021 07:17
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