- EPPO in Madrid detained eight suspected members of a criminal network for involvement in a €68 million VAT fraud scheme related to imported alcohol.
- Searches were conducted in 19 locations across several Spanish cities, targeting company premises, suspect residences, a luxury hotel room, and a tax warehouse.
- Law enforcement seized a yacht, five cars, 34 luxury watches, and €333,085 in cash; over €700,000 was frozen in bank accounts, and 21 real estate properties were ordered for seizure.
- The fraud involved importing alcohol from EU tax warehouses to a Spanish tax warehouse, exploiting VAT exemptions on cross-border transactions.
- Fraudulent intermediaries in Spain acquired the alcohol, evaded VAT obligations, and sold it through a chain of fraudulent companies using false invoices.
- The scheme generated an illicit profit of approximately €68 million from 2018 to 2024, harming the Spanish state and EU budget.
- The investigation was supported by Spain’s Guardia Civil and Tax Agency.
- All suspects are presumed innocent until proven guilty in Spanish courts.
- The EPPO is responsible for investigating and prosecuting crimes against the EU’s financial interests.
Source: eppo.europa.eu
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.
