Suspected of running dozens of companies, taxi driver linked to VAT fraud scheme worth more than 40 million euros

A court in Greece has ordered the continued freezing of the bank accounts, properties and assets of individuals and companies suspected of being part of a VAT fraud scheme, the damage from which is estimated at more than 40.7 million euros.

Investigations have uncovered a network of companies suspected of exploiting imports from China and fictitious sales within the European Union to evade tax obligations and secure illegal VAT refunds.

The goods entered Greece through the port of Piraeus, while the documentation indicated that they were first sold in Bulgaria and then in Italy and Spain. However, authorities found that some of the entities listed as final buyers had neither ordered nor received the products.

According to suspicions raised by investigators, the scheme relied on two different methods of benefiting from the VAT mechanism. In some cases, the companies paid the tax at the time of import and then sought refunds, relying on fictitious sales outside Greece. In other cases, the goods were declared as destined for other EU member states, allowing the companies to avoid paying VAT at customs.

Investigation documents show that the network is suspected of having received around 8.7 million euros in VAT refunds, while the avoided payments are believed to have amounted to at least 40 million euros. In total, the damage estimated by the court in connection with the suspected activity exceeds 40.7 million euros.

Particular attention has been drawn to the fact that some of the people registered as owners or administrators of dozens of businesses declared minimal or zero income.

One of them is a taxi driver who, in addition to his individual business activity, is listed as a partner or administrator in a large number of companies operating in the restaurant, entertainment and services sectors. These businesses are located in Athens, Mykonos and other areas of Greece. According to investigators, such individuals may have been used as formal owners in order to conceal the people who actually controlled the companies.

The case has taken on an international dimension, as the authorities have sent at least 15 requests for cooperation to various European countries, including Italy, Spain, France and Germany.

The European Public Prosecutor’s Office is continuing its investigation to determine individual responsibilities and fully establish the extent of the suspected fraud scheme.