SDOE: Companies with serious tax evasion and smuggling violations

Companies that traded counterfeit products, adulterated drinks and contraband tobacco products with significant losses, among other things, in duties and taxes for the Greek State, were identified, during inspections in Attica, by the auditors of the competent Operational Directorate of the SDOE.

Below, the audit cases are listed in detail:

A) Following the utilization of a relevant complaint, a company was identified where it did import of alcoholic beverages with a low alcoholic strength and by filing customs documents such that reduced duties and taxes were paid, which led to extra profits being made. The SDOE auditors carried out checks at the premises of the alcoholic beverages trading company in the Attica area. A check was carried out on the company’s stocks, related to the import of the specific alcoholic beverages, and samples were taken to be sent to the Chemical Service. From the control of the samples, it was found thati alcoholic beverages were classified as “NON-NORMAL” as they do not meet the conditions to be classified as “fermented beverages”. As a result, it emerged that the specific company imported into Greece alcoholic beverages of a specific label, paying reduced duties and other taxes. The amount of customs charges benefited by the auditee was determined to date by the competent customs authorities, in the amount of €4,205,426.

The investigation of this Service was assisted by employees of the Athens Customs and the 3rd Customs of Piraeus.

A relevant Report was forwarded to the Customs Service for the imputation of the relevant fines.

B) Following the utilization of information about tobacco trading companywhich, using a special trick, achieved the reduced payment of customs duties, a joint operational action group was established, in cooperation with the Organized Crime Department of Heraklion, Crete, where an audit was carried out in a business trading tobacco products.

From the processing of the customs and tax documents as well as from the examination of the samples taken, it was found that the audited company, by using the special trick of separately importing tobacco on the one hand and flavored liquid for tobacco on the other, did not pay the corresponding customs duties, while also was dealing in refill liquids that fall under the category of tobacco products and duties etc. taxes are due. The goods traded by the controlled company were classified by the Chemical Service in the tobacco category, with missing duties and other taxes amounting to €1,130,771.

A relevant Report of our Service was drawn up to the Heraklion Customs, for the imputation of the relevant fines for smuggling.

The Organized Crime Department of Heraklion, Crete will inform the Heraklion District Attorney’s Office with a relevant report.

C) Following the exploitation of information, regarding the operation of companies that trade in counterfeit-piracy products, the auditors carried out numerous on-site and cross-financial audits of transactions and bank account movements and established the existence of virtual companies, without real activity, that operated in a coordinated manner with the sole purpose of illegally trafficking counterfeit products. In particular, it was established the operation of at least eight (8) companies that transported their goods through a well-known courier company and collected from sales of goods a total of €10,607,352 during the three years 2019-2022, while from the Information Systems of the Ministry of of Finance it was found that audited companies either submitted zero or inaccurate periodic VAT returns, aconcealing a total amount of €9,646,075resulting in the creation of an illegal property benefit with a corresponding loss at the expense of the State from the non-payment of the corresponding VAT and the concealment of taxable material. Also, the audit established the use of the illegal property benefit by the companies, in such a way as to give them the appearance of legitimacy in violation of the provisions on the legalization of criminal proceeds (“Money Laundering”). The Service sent relevant Information Bulletins to the competent tax authorities for the further control and calculation of the relevant taxes.

The persons involved were charged with the offenses of money laundering and forgery, fraud and violation of the rules on unfair competition and the procurement code.