NAV busts foreign fertilizer fraud ring
NAV is proposing the prosecution of 16 members of a criminal group for fraudulent use of foreign-sourced fertilizers in a scheme that cost the state HUF 1.3 billion in lost tax revenue, writes hvg.hu.
The perpetrators are suspected of buying fertilizers of Polish, Lithuanian and Dutch origin from abroad.
The purchased goods were sold through fictitious buyers based in Hungary, to "failed companies" set up for this purpose, thus allowing the actual domestic purchasers to reduce their VAT payable.
The directors employed their own accountant and several liaison officers. They maintained contact at organizational levels and provided for the exchange of the necessary documents, thereby making the actual path of the fertilizer traceable. NAV investigated more than 60 locations all over the country.
Significant amounts of cash, jewels, 13 properties, five vehicles, business shares and more than 40 bank accounts were seized and confiscated during a two-day operation. By securing the assets of criminals, the total damage to the budget of HUF 1.3 bln was recovered, hvg.hu notes.
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