VAT “Carrossel”: 39 held for damage State in over 150 million

A Judicial Police (PJ) arrested this Wednesday 39 suspects in the practice of crimes of criminal association, tax fraud and whitening, for harming the Portuguese state by more than 150 million euros, following an investigation entitled by the European Public Prosecutor's Office (EPPO), in joint investigation with the Tax Administration and the Republican National Guard (GNR). 

In a statement, PJ states that “this criminal activity focuses on a tax fraud scheme called ‘carrossel’, which seeks to use natural weaknesses arising from the VAT taxation regime when we are facing intra-Community transactions in goods”.

It also explains that, “in practice, this scheme is related to the marketing of mobile phones and electronic devices and was to circulate goods through a fraudulent chain of companies and ‘missing traders’, i.e. companies that disappear without complying with their tax obligations. Subsequently, other companies in the fraudulent chain would ask the national tax authorities to refund VAT.”. 

“ The steps taken in two separate investigations cover the same criminal reality that, given its nature, also led to the conduct of collection efforts in Germany, France, Spain, Italy, Malta, Low Countries, Lithuania and Austria,” he said. 

In turn, “in Portugal, the estimated asset advantage amounts to at least EUR 125 million in one investigation and EUR 30 million in another.”. 

The PJ notes that 248 home and non-house search were carried out in the municipalities of Porto, Espinho, Aveiro, Santa Maria da Feira, Ovar, São João da Madeira, Oliveira de Azeméis, Arouca, Braga, Lousada, Lisbon, Alcobaça, Torres Novas, Torres Vedras, Caldas da Rainha, Sobral de Monte Agraço, Arruda dos Vinhos, Vila Franca de Xira, Loures, Odivelas, Sintra, Oeiras, Cascais, Amadora, Almada, Seixal, Moita, Palmela, Setubal and Loulé were held 39 people linked to this transnational organization, Portuguese and foreign, aged between 30 and 60 years.

Following these searches, 39 people were arrested “linked to this transnational organization, Portuguese and foreign, aged between 30 and 60 years”.

“In the course of the police operation, the judicial arrest was materialized, through the intervention of the Asset Recovery Office, of 26 properties, corporate holdings in 18 companies, 80 automobiles, other luxury goods and various bank accounts domiciled in Portugal. Four other high-cylinder cars and large amounts of cash in euro and foreign currency were also seized”, read in the press release. 

Detainees will be present to the competent judicial authority in the Central Criminal Instruction Court for first judicial questioning and enforcement of coercion measures.

The police operation involved about 740 elements from various departments of the Judicial Police, as well as 212 elements of the Tax Administration and 151 military of the Republican National Guard, having participated 13 judicial magistrates and 7 European Prosecutors Portuguese Delegates, also counting on Europol’s cooperation.