Internal intelligence clamps down on VAT fraud network

Two people suspected of belonging to a criminal VAT evasion group have been detained by the Internal Security Agency (ABW) in the central province of Mazowsze as part of an investigation into the extortion of PLN 60 mln (EUR EUR 14.10 mln), Poland’s “wpolityce.pl” news website reported.

According to the website, quoting Stanisław Żaryn, Spokesperson of the Special Services Coordinator Mariusz Kamiński, the group and tens of its related companies made fictitious sale transactions in steel, zinc, lead and aluminium. The goal of spinning the carousel was to receive undue VAT return.

“The case refers to economic entities’ activities in the trade of metal products in 2012-2015,” Mr Żaryn said.

“wpolityce.pl” wrote that the detained suspects were unofficially managing and controlling one of the entities involved in the illegal business. A person who had formally been in charge of the company was detained at an earlier stage of the investigation and charged. The company was used as a means to extort VAT. Only between January and July 2015, the company carried out fictitious transactions worth PLN 60 mln (EUR 14.10 mln).

The two detainees will remain in custody for 3 months. The investigation is ongoing. To date, as many as 66 individuals have faced charges in connection with the case.

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