A gigantic patchwork of real and non-existent transactions, between real and shell companies, is being investigated by the Independent Public Revenue Authority following a citizen’s complaint, which pointed to a fake olive oil invoice trafficker and a natural person – manager of legal entities (mainly olive mills ).

The checks are carried out using myDATA data, files, seized during the raids on the specific companies, as well as their bank account movements.

From the investigation so far, it has been established that, in this labyrinthine circuit, in 2022-2023, more than 30 companies are involved, of which at least 14 have been established for the purpose of issuing and receiving virtual invoices, and by extension:

A. The creation of VAT credit balances and the abusive tax refund, by existing recipient companies

B. The coverage of purchases from farmers with special or regular VAT status or from olive mills without tax information.

The steps of research

From the investigation it was found that a company with a start date of operations in 2021, had not submitted income tax and VAT returns, while also from the myDATA data there were no purchases (i.e. they did not seem to have declared revenue from sales to it by third party suppliers, while at the same time there was no from the summary tables (listing) the existence of intra-community acquisitions).

Therefore, IKE does not appear to have made purchases, while it did not respond to an audit invitation to provide accounting records.

However, from the opening of IKE’s bank accounts and from MyDATA, it appears that 15 tax details have been issued to a sole proprietorship (a member of the fraud ring), with a net value of 200,000 euros.

A partial on-site audit was then carried out at the receiving sole proprietorship, with the object of activity being the trade of olive oil, where additional tax data issued by IKE was submitted to the audit upon invitation, with the result that the receiving company received and recorded in its books a total of 32 invoices, with a total net value of 700,000 euros.

From all of these items, 15 tax items with a total net value of 200,000 euros had been uploaded to MyData as income of the non-existent IKE, and therefore as expenses of the recipient sole proprietorship.

These invoices were paid through e-banking, while the tax information, for which no posting was made in myDATA, was paid by checks, where their collection was made by natural persons for whom no relationship or transactions with IKE can be established (as these are natural persons without starting an activity), who were called by the control in writing for explanations, without responding.

These 30 companies have traded in at least 60 combinations, having issued more than 1,700 virtual invoices, with a net value of more than 80 million euros.

From the investigation so far, it appears that 4 issuers issued 1,632 tax items, with a net value of €33.17 million and VAT of €4.32 million, which, in the majority, were paid by their recipients, including via bank transfer. system, which they…”tricked”, by carrying out systematic direct withdrawals of the sums of money.

In addition to the tax charges, which will arise upon completion of the overall audit process, those involved are also at risk of criminal prosecution, as the issuance and receipt of fictitious tax information are included in tax evasion crimes.

The investigation into the remaining issuers and receivers is ongoing.