The European Public Prosecutor’s Office announced it on Tuesday uncovered the biggest cross-border VAT fraud scheme, never investigated in the EU. It is a scam worth around 2.2 billion euros, This was reported by Euronews.
The investigation begins in April 2021 in Portugalwhere authorities are investigating a company selling mobile phones, tablets, headphones and other electronic devices that is suspected of VAT fraud.
The Portuguese authorities are reporting the case to the European Public Prosecutor’s Office following its launch in June 2021. although the initial investigation found no serious wrongdoing.
But further investigations by European prosecutors, financial fraud analysts, Europol and national law enforcement agencies withcorro establishes links between Portuguese companies and nearly 9,000 others legal entities and more than 600 natural persons located in most EU countries, as well as in Albania, China, Mauritius, Serbia, Singapore, Switzerland, Turkey, United Arab Emirates, United Kingdom and United States.
The searches were carried out in six EU Member States in mid-October and another 200 searches carried out on Tuesday in 14 other EU countries.
“All the data collected is being analyzed and the investigations into the organized criminal groups behind this plan are ongoing, the European Public Prosecutor’s Office said in a statement. The estimated damage covered by Operation Admiral is currently 2.2 billion euros. Measures have been taken to repair the damage,” he added.
According to the EU agency, the case deserves attention not only for its broad scope, but also for “the extreme complexity of the business chain”.
“These activities would not have been possible without the participation of several highly qualified organized crime groups, each of which has a specific role in the overall scheme. Working on a transnational level, almost with an industrial logic, they have avoided detection for years,” continues the prosecution. she said. She said.
Such fraud costs EU countries 50 billion euros a year in tax losses.
“Operation Admiral” is a clear demonstration of the advantages of cross-border prosecution,” said European Chief Prosecutor Laura Koveschi. When it comes to VAT fraud, from a national perspective the damage can be assessed as relatively low or zero, or even go unnoticed. You need a view from the helicopter to see the whole picture,” she added.
