European Prosecutors Dismantle €297 Million VAT Fraud Network Across 16 Countries

• European prosecutors dismantled a major VAT fraud network, resulting in an estimated loss of €297 million.
• The operation, named Operation Admiral 2, involved over 300 searches across 16 countries and led to the arrest of 32 suspects.
• The criminal network, primarily composed of suspects from the Baltic countries, had been operating for several years.
• The fraud scheme, known as “carousel fraud,” exploited VAT-free cross-border transactions within the EU.
• Suspects set up companies in 15 EU member states, selling over €1.48 billion worth of electronic products online.
• Customers paid VAT, but the companies evaded tax obligations and disappeared before paying national tax authorities.
• Other companies in the scheme claimed VAT refunds from the authorities, with profits transferred to offshore accounts.
• More than 400 companies are suspected to be involved, with links to money laundering from illegal activities like drug trafficking and cybercrime.
• The operation resulted in the seizure of electronic items worth over €47.5 million, luxury cars, and €126,965 in cash.
• 62 bank accounts with a total value exceeding €5.5 million were frozen.
• Investigations suggest potential involvement of Russian criminal networks in the operation, with ongoing inquiries expected to yield more details.

Source:

• delano.lu
• Taxence

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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