In an investigation into a complex VAT fraud on imported fuel, led by the European Public Prosecutor’s Office in Bologna, Italy, the Modena Financial Police (Guardia di Finanza) this month seized €5 million worth of assets in the provinces of Modena and Ravenna, EPPO reports.
At issue is the suspected Missing Trader Intra-Community (MTIC) fraud, a complex criminal scheme that exploits EU rules on cross-border transactions between member states because they are exempt from value added tax (VAT).
The investigation began following a tax audit by the Guardia di Finanza, Modena’s economic financial police unit, which revealed that the suspect company had imported fuel at a particularly favourable price through a fraudulent chain of so-called absentee traders – shell companies set up for the sole purpose of evading VAT.
The suspected company then allegedly sold fuel to petrol stations at prices far below market prices, thus gaining an illegal advantage over honest economic operators. The scheme is estimated to have caused a loss of around €14 million to the Italian budget.
At an earlier stage of the investigation, the company’s headquarters were searched and €120,000 in cash was found in the car used by the company’s legal representative.
All persons concerned are presumed innocent until proven guilty before the competent Italian courts.
EPPO is an independent prosecutor’s office of the European Union. It is responsible for investigating, prosecuting and sentencing offences against EU financial interests.
