Italian Police Uncover €10.5 Million Tax Fraud Scheme Involving Chinese Nationals and Shell Companies

• Italian financial police uncovered a 10.5 million euros tax fraud scheme involving 15 Chinese nationals
• The scheme involved shell companies funneling profits overseas, affecting EU financial interests
• Suspects used fictitious invoices to manipulate tax filings and reduce declared income
• The fraud resulted in over 5.5 million euros in unpaid VAT
• Investigation revealed firms claimed false expenses for goods supposedly from domestic suppliers
• Goods actually arrived from China, bypassing Italy’s tax and customs systems
• Invoices were linked to shell entities with no physical premises or legitimate operations
• Companies were registered to Chinese nationals with no business experience
• Some companies operated from the same addresses or used the same consultants
• Reported turnover surged to tens of millions of euros without paying taxes
• Scheme involved a classic carousel fraud to claim VAT credits and obscure goods’ origins
• Payments were made through traceable channels but later transferred abroad, mainly to China
• 14 suspects filed false tax returns; mastermind was behind fake invoices
• Operation is part of a broader crackdown on tax fraud to protect businesses and public finances in the EU

Source: occrp.org

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.

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