Giovanni Legorano
14 June 2023•Update: 14 June 2023
ROME
Five people were arrested Wednesday in the EU on suspicion of being part of a large tax fraud scheme, according to Europol.
The arrests are the result of a large European probe, which involved more than 2,000 tax, customs and police investigators from seven countries. Europol did not disclose where the arrests were made.
Authorities also carried out more than 450 searches and seized real estate and cars in Belgium, Germany, Hungary, Italy, the Netherlands, Portugal and Spain, as part of the investigation.
Europol said around 60 people are suspected of participating in the organized group behind the scam or of supporting the main suspects.
Authorities estimate that the group €225 million ($243 million) in profit between 2017 and this June, and calculated losses in value added tax (VAT) payments caused at least €38 million during the same period.
The investigation began in 2021 after a report to the European Public Prosecutor’s Office (EPPO) by the Italian tax authority saw companies registered in Italy and Hungary -- following their acquisition of a high number of cars from Germany and subsequent sale to private citizens and companies in other EU countries -- had not paid VAT to Italy.
The report kickstarted a large investigation across Europe which found the alleged tax fraud was committed on the international trade of more than 10,000 cars.
Europol said that, according to the evidence gathered, the suspects regularly issued false invoices to private individuals or traders, which made it appear as if customers had correctly purchased the vehicles and paid VAT.
Individuals were subsequently able to register the vehicles purchased in another country, thanks to the invoices, added Europol.
