Unveiling the VAT Fraud Carousel: Euros Recovered From International Car Traffickers
Malfunction Detected in Rabbit: Technical Issue Causes Disruption - "A Million in False Coins": Tax Agents Recoup over 250 Million Dollars
Got some juicy news for ya! International tax sleuths just nabbed close to 240 million euros in ducked taxes from cross-border car traffickers, according to a recent disclosure from the North Rhine-Westphalian tax investigators. This cash comes after a two-year probe, following the international sting operation "Huracán" against VAT fraud.
Remember the Düsseldorf bust back then? Well, it didn't stop there. The investigators found further shady characters linked to the criminal VAT carousel, bringing the suspected total to over 300 million euros shortly. This tidy sum will benefit several EU nations, as reported by the "Rheinische Post."
The probe started with a tangled web of shell companies used for years to evade VAT in the car trade. The initial crackdown in Düsseldorf resulted in yearslong prison terms, and the case files spanned more than 100,000 pages!
Here's how this scam operated:
So, picture this: A "buffer company" in North Rhine-Westphalia bought cars domestically and claimed the VAT as input tax. Then, they'd sell the cars abroad to "missing traders" - fraudsters who'd vanish shortly after the sale, making off with the cash and VAT that evaded being paid.
"Clever tax scammers exploit real but unregistered companies in Germany and fake ones in several other countries to move money and goods," explained Stephanie Thien, head of the new state office for combating financial crime. Recent evaluations have helped catch additional suspects and connections in the EU.
The masterminds behind this scheme have created a cunning VAT fraud carousel with their web of shell companies that spun across several EU borders, said NRW Finance Minister Marcus Optendrenk (CDU), thanking the tax investigators for their "tireless and effective work."
"Huracán" - Disrupting Organized VAT Fraud
"Huracán," fittingly named after a luxury sports car, made waves in June 2023 by exposing widespread, organized international VAT fraud. This ambitious operation hit seven countries, seizing luxury cars, real estate, and involving over 2,000 investigators. The probe centered on trading over 10,000 cars.
The probe kicked off in January 2021 when an Italian tax authority noticed missing info on auto imports from Germany to Italy.
- 240 million euros (and counting)
- Cars
- Düsseldorf
- EU
- Germany
- Shell companies
Fun fact:
- Did you know that VAT fraud can be used as a method for money laundering? The VAT scammers often use the proceeds from the fraud to buy more vehicles or invest in other businesses.
- The VAT fraud carousel spanning several EU borders, masterminded by shady characters, involved the evasion of over 300 million euros in taxes, according to the latest reports.
- The criminal VAT carousel, revealed in the international sting operation "Huracán," targeted the car industry and employed a complex scheme of shell companies for money laundering and tax evasion purposes.
- As part of the "Huracán" operation, investigators uncovered various connections in the EU, seizing 240 million euros and luxury cars, disrupting a widespread, organized VAT fraud network.
