On November 13, the Municipal Chief Prosecutor’s Office received Horváth’s report in which he alleged that large-scale VAT fraud had gone unnoticed by the tax authority. The prosecutor had asked the police to supplement the report, and the chief of police transferred the case to a police investigations unit on November 27.

On Monday, the competent authority ordered an investigation against an unidentified suspect who is charged with abuse of office.

Horváth told a press conference in November that over HUF 1 trillion per year has gone missing from state coffers in unpaid VAT with “the support of government circles and the tax authority.” NAV denied the accusations and pressed charges against Horvath for libel.

Horváth said earlier he had evidence to prove that officials had abused their powers at NAV, and he attached a 200-page document serving to underpin his claims.

Governing Fidesz earlier said its lawmakers had agreed that tax fraud must not go unpunished, but insisted it was up to the public prosecutor’s office to clarify whether Horváth’s statements were true or not.