Tax Office Clamps Down On 3-Billion - Forint Vat Fraud Ring
- 20 May 2015 9:00 AM
The tax office NAV has clamped down on a crime organisation suspected of a 3 billion forint (EUR 9.8m) fraud from reclaiming valueadded- tax (VAT) based in Debrecen, in eastern Hungary, NAV’s local office said. The investigation was closed on May 11 after a full year of gathering evidence, head of NAV’s regional office Tibor Lengyel said.
The company used a well-known method of purchasing iron goods, machinery and parts from Slovakia and reselling them at a 15% discount with the use of companies as middle men.
The organisation put the products through a purchase ring several times, claiming back VAT on each turn. Yet the products were shipped straight to their depot in Debrecen and sent on to the end user. Some 60 businesses were involved in the scam, said Lengyel.
Eight people have been questioned so far as suspects in the case and five of them have been detained. NAV seized valuable property, assets, bank accounts and vehicles close to the full value of the damage which it is hoped to cover, Lengyel added.
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