Poland busts largest ever VAT fraud operation


Polish tax authorities have disclosed that a recently busted VAT fraud gang is believed to be the biggest in the country's history, daily Rzeczpospolitareported, cited by news portal Notesfrompoland.com.

The illegal operation ran for eight years, selling fictitious invoices for an estimated total value exceeding one billion zloty (EUR 223 million), according to an investigation by the Regional Prosecutor's Office in Warsaw and the National Tax Administration (KAS).

The company, founded in 2013, sold the fake invoices to other firms to inflate their costs and thus pay lower tax on earnings. The fictitious services would be matched to the line of the business of the companies – which included transport, construction and IT – to avoid raising suspicion.

The fake invoices would be issued by shell companies, whose management boards included unemployed and homeless people. Customers would usually pay between 8% and 10% of the sum on the invoice, reported Rzeczpospolita.

In total, 35 people have been charged with participating in an organized crime group and seven are suspected of VAT crime. Four of them, including the two who led the operation, are in detention. However, officials believe that as many as 1,500 people could have been involved in the case, either as customers or by running the group.


Companies Borrow HUF 256 bln in October Banking

Companies Borrow HUF 256 bln in October

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Mahart Container Center Depot Opening at Budapest Airport Transport

Mahart Container Center Depot Opening at Budapest Airport

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.