In a significant crackdown on criminal activity, Polish authorities have unveiled a VAT fraud scheme within the timber trade industry, amounting to a staggering 46 million PLN. The operation led to the arrest of nine individuals suspected of participating in an organised criminal group responsible for orchestrating the fraudulent activities, including VAT evasion and money laundering.
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The arrests were made by officers from the West Pomeranian National Tax Administration (KAS) following an extensive investigation into the illicit activities plaguing the timber trade sector. The Provincial Tax Administration Chamber in Szczecin revealed that the suspects, including company presidents involved in timber trade chains, were apprehended in coordinated raids across the region.
The investigation uncovered a web of deceit involving the issuance of empty invoices totalling over 203 million PLN. These fraudulent documents facilitated the evasion of VAT, resulting in a loss of 46 million PLN to the state. The fraudulent scheme operated by reselling timber products through a series of related entities, followed by their return to the initiating entity on the same day. Additionally, the criminals devised an intricate system of employee outsourcing, wherein employees were formally employed by related entities to evade tax and social security contributions.
Source: biznes.meble.pl