Focus operation in 17 European countries, 14 people arrested
Vienna (OTS) – At the beginning of April, the European Public Prosecutor’s Office (EPPO) in Munich and Cologne took action against a suspected criminal organization that is said to have committed massive VAT fraud amounting to 195 million euros through the sale of smartphones, small electronic devices and protective masks. In a focus operation coordinated across Europe, 130 searches were carried out and 14 people were arrested. The Austrian tax investigation also took part in the operation.
“The fight against cross-border duty and tax fraud only works through well-coordinated international cooperation. Thanks to the meticulous preparation and decisive action of all units involved, a massive case of fraud was uncovered and the criminal activities were brought to an end. I would like to thank all of the colleagues deployed,” said Finance Minister Magnus Brunner.
Successes in Austria
In Austria, the tax investigation team with around 55 emergency services carried out search and seizure orders at a total of seven addresses. Two Austrian citizens are listed as defendants.
Due to another European arrest warrant against a German citizen who is listed as a defendant in these proceedings in Germany but was on a skiing holiday in Austria, the arrest was made through legal assistance. He is now in custody for extradition.
During the seven house searches in Austria, a total of almost 200,000 euros in cash, numerous valuables, 166 iPhones in their original packaging worth around 200,000 euros and 45 other smartphones were confiscated. In addition, extensive evidence such as paper documents and data carriers was seized.
680 emergency services across Europe
Around 680 investigators were deployed across Europe at the same time to secure evidence and make arrests in a total of 130 searches. The background is a suspected VAT carousel fraud by a German conduit company. This is a complex criminal scheme that exploits EU rules on cross-border transactions between Member States, as these are exempt from VAT.
The accused company is believed to have carried out various VAT frauds related to the trade of small electronic goods, including smartphones, since 2017. It is believed that the suspects used fraudulent chains of traders who disappeared without fulfilling their tax obligations.
Corona mask business
From 2020 onwards, the same people entered the market for protective masks and wanted to profit illegally from the corona pandemic. The European Public Prosecutor’s Office believes that the suspected criminal organization behind the identified VAT frauds created a series of shell companies, front men, fictitious identities and secret communication channels to conceal their criminal activities. The focus action now carried out is intended to serve as the basis for an indictment after evaluating all the secured evidence.
Next Monday, May 6th, Finance Minister Magnus Brunner and the tax investigation department will present the tax investigation’s 2023 performance balance, including spectacular, successfully completed cases.
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Questions & Contact:
Federal Ministry of Finance, Press Office
(+43 1) 514 33 501 031
bmf-presse@bmf.gv.at
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