GNR dismantles European VAT fraud scheme

in News · 03-03-2020 17:55:00 · 1 Comments

The Tax Action Unit of the Republican National Guard, under the direction of the Central Department of Investigation and Penal Action (DCIAP), carried out Operation NETTO PRICE on 26 and 27 February, which aimed to dismantle a transnational network dedicated to obtaining of illegitimate patrimonial advantages, through a fraudulent scheme based on fictitious billing circuits, whose purpose was to engage in VAT evasion and fraud and the improper obtaining of European funds.

In the course of this police operation, 123 search procedures were carried out at home, in companies and public bodies, 108 of which in Portugal, seven in the United Kingdom, six in Germany and two in Latvia.

Taking into account the transnational dimension of the offenses, the operation had, in terms of police cooperation, the sponsorship and operational support of EUROPOL, in national territory and in the United Kingdom, and in the scope of coordination and judicial cooperation, the intervention of EUROJUST.

As a result of the investigations carried out, 11 people were arrested, in addition to 16 defendants and 33 Portuguese persons having been accused, 139 medium and high-end motor vehicles, 5 vessels and 70 different technological and computer equipment were seized, and 47 thousand Euros in cash, with a total estimated value of approximately 2 million and 600 thousand Euros.

The Portuguese Asset Recovery Office (GRA) guaranteed the freezing of 72 bank accounts and other financial instruments held by the suspects in Portugal and the United Kingdom, an amount not yet quantified.

In view of the specificity and complexity of the subject matter in the investigation, EUROPOL forensic experts participated in this operation, which it also supported with information analysts, the Tax and Customs Authority and the GNR criminal investigation structure.

The investigation into this criminal activity, had been developed for about two years, allowing to identify a network with a transnational dimension, that operated simultaneously in Portugal, United Kingdom, Germany and Latvia, using billing triangulation schemes between companies from different Member States and the constitution of missing trader companies that issued false invoicing, creating documentary circuits intended to certify the introduction in Portugal of used motor vehicles, evading VAT due to the Portuguese State, with the complicity of employees involved in the legalization of vehicles.

At the same time, they resorted to the massive issuance of false invoices in order to allow other operators to obtain undue deductions and refunds of VAT, as well as to obtain fraudulently European funds for development.

The criminal organization managed, using this fraudulent scheme, to obtain an illegitimate patrimonial advantage of at least 5 million Euros.

The suspects identified are indicted for crimes of criminal association, qualified tax fraud, money laundering, active and passive corruption, malfeasance, denial of justice and fraud in obtaining a subsidy.

The investigation efforts had the participation of the Tax and Customs Authority, through the Finance Directorate of Porto (AT).

About 300 GNR officers, belonging to the Fiscal Action Unit, to the Territorial Commands of Porto, Lisbon and Madeira, and to the Intervention Unit were engaged in the operation, as well as members of the Public Security Police and employees of the Tax Authority and Customs.

Internationally, the operation was supported by the Her’s Majesty Revenue and Customs (HMRC) of the United Kingdom, the Steuerfahndung of Germany and the State Police of Latvia.


Comments:

There is ANOTHER VAT SCAM which the Portugese state has missed.It is called TRADING IN PORTUGESE VAT INVOICES - which has been going on for a long, long time.

There are 3 Thieves - Thief 1 -Savio Noronha,Thief 2 - Anthony Monteserrate,Thief 3 - Stanley Gomes

Thief 1 sells 100000 bottles of beer at 5 Euro a bottle, to Thief 2, at a VAT of 20% ,and so, the VAT is 120000 Euro.In reality, there is no sale, as Thief 1 had sold the bottles in the black market, 30 days ago.THEREFORE,THIEF 1 (SAVIO) has a VAT debit - but he DOES NOT WANT TO CLAIM VAT REFUND, from the state - as the STATE WILL AUDIT THE FACTORY AND RECORDS.

So thief 1 raises a bill for Euro 620000 on Thief 2 . Thief 2 pays 500000 Euro and 120000 of the VAT - but gets 20000 Euro back in cash from Thief !

In steps Thief 3 (Stanley Gomes) who has a chain of Pubs.He buys beer in the black market, at half the list price, and sells it per pint, in the Pubs. THIEF 3 PAYS NO VAT,ON BOTH SIDES OF THE TRADE. His REAL sales are, say 10 million Euros, a year ,and of that, THERE ARE SALES OF 1 MILLION EUROS, ON INVOICES , wherein THIEF 3, HAS TO PAY VAT ! dindooohindoo

But THIEF 3 DOES NOT WANT TO PAY VAT.SO WHAT DOES HE DO ? HE DOES A PURCHASE TRANSACTION,WITH THIEF 1,FOR 100000 BOTTLES OF BEER, AT 5 EURO A BOTTLE, AND 20% VAT.SO THIEF 3,PAYS 620000 EUROS TO THIEF 2,AND THIEF 2 PAYS BACK TO THIEF 3 , EURO 18000 IN CASH (IN REALITY,THERE IS NO SALE)

PROFIT TO THIEF 2 = 20,000 MINUS 18000 EUROS = 2000 EUROS
PROFIT TO THIEF 3 = 18000 EUROS ,AS HE IS GETTING A VAT PAID INVOICE OF 120000 EURO - BY PAYING ONLY 102000 EUROS (NET ) ,WHICH IS THEN USED BY THIEF 3,TO PAY VAT ,ON THE 1 MILLION EUROS OF BILLABLE SALES, FROM THE PUBS

By samir sardana from Other on 02-05-2021 07:42
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