EU Investigation Brings Arrests in Greece, Germany for Tax Fraud

ATHENS – A probe by the European Public Prosecutor’s Office (EPPO) led to the arrest of two people in Greece and Germany and raids into a group said to be behind 30.7 million euros ($33.44 million) in tax fraud involving small electronic devices.

They weren’t identified by EPPO said one arrest was in in Athens and the other in Cologne and that 42 searches were conducted in total in Greece and Germany in the investigation into a cross-border organized crime group.

https://www.eppo.europa.eu/en/news/two-arrests-greece-and-germany-eppo-investigation-eu307-million-vat-fraud

Authorities said that between 2021-22 suspects purchased earphones and other small electronic devices – either directly or through other legal entities – and then sold the goods to Greek companies, without paying Value Added Tax (VAT.

It is understood that, in order to do so, the goods were initially invoiced to so-called missing traders – shell companies established for the sole purpose of evading the payment of VAT, said EPPO.

Law enforcement agents seized 12 cars, including luxury SUVs and sports cars, goods worth more than 100,000 euros ($108,927), smartphones, laptops and desktop computers, and more than 250,000 euros ($272,317) in cash.

Greek authorities have also executed two European Arrest Warrants issued by the EPPO’s Cologne office, concerning suspects understood to have organized the German component of the VAT fraud scheme.