Hungarian TAX Office Clamps Down On HUF 430M Retail Tax Fraud
- 5 Dec 2013 8:00 AM
The national tax office (NAV) has clamped down on a retail ring involving large-scale tax fraud, involving 13 suspects. One person is already in pre-trial custody, NAV told MTI. The supermarket chain based in Pécs, southwest Hungary, distributed cleaning products, home appliances, sweets and coffee, but did not pay value added tax (VAT) on its sales.
The suspects created an invoice ring, under which invoices were issued by companies which did not conduct any real business and which displayed a price inclusive of VAT, without actually paying it.
The damage caused to the state is estimated at 430 million forints (EUR 1.4m). The culprits face a prison sentence of 2-8 years, if found guilty of tax fraud.
The tax office has recently been accused by a former employee of looking the other way when it comes to investigating suspected tax avoidance by large companies.
Source www.hungarymatters.hu
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