Eighteen people have been detained in Greece in an operation targeting an alleged tax fraud network believed to have accumulated liabilities of more than €203 million. The investigation is focused on companies in the restaurant and nightlife sectors in Thessaloniki, Halkidiki and other parts of the country.
According to the Independent Authority for Public Revenue, the scheme used more than 4,200 tax identification numbers over the past three years. Of the total amount, €68 million is linked to unpaid VAT and income tax, while €135 million consists of unpaid social security contributions to EFKA.
More than 2,000 companies and 1,300 figureheads
The investigation covers more than 700 addresses where over 2,000 businesses operated. Authorities have identified around 1,300 nominal owners and managers, as well as approximately 700 people who allegedly controlled the businesses behind the scenes.
According to the authority, the figureheads were not actually involved in managing the companies. The firms were used to accumulate tax and social security liabilities that were never intended to be paid.
“Cross-referencing this data was the key to uncovering the scheme,” the Independent Authority for Public Revenue said.Recruited people outside hospitals
According to the investigation files, the network sought out people with serious health problems, mainly outside hospitals in Thessaloniki and Athens. They were offered small sums of money to pose as company managers and sole owners.
Among those detained are a businessman's wife and a well-known actor and model. The authority claims that the actor admitted to being used as a figurehead in exchange for a monthly payment of between €200 and €700.
The role of accountants and a lawyer
Three accountants and a lawyer are suspected of having played a key role in setting up the companies and managing the figureheads. According to the Independent Authority for Public Revenue, the lawyer used forged documents to obtain permits from municipal, fire and health authorities.
Sixty inspectors and seven prosecutors took part in the operation. The detainees are due to be brought before the competent authorities, while the investigation must establish the specific role of each of them. They are presumed innocent until a court rules otherwise.
Sources: bta.bg, ekathimerini.com, gr.euronews.com