Tax cobra bites into illegal VAT deductions worth over €3 million

The special law enforcement unit 'Tax Cobra' has uncovered a new case involving illegal excessive value-added tax (VAT) deductions, with the damage currently amounting to over €3 million, Financial Directorate (FS) president Frantisek Imrecze informed. As he claims, a man identified only as Peter P., who is currently on the run, is considered to be the organiser of the aforementioned tax fraud. "The case, named 'Stano', involves fraudulent activities based on absolute fiction. There was no taxable payment in this case, nor was any commodity transaction carried out. Entities, an organised group of 40 companies, first submitted tax returns and only then artificially fabricated tax documentation for them so that the transactions and taxable payments would look like real ones," said Imrecze, adding that some of the companies strove to fabricate transactions for diamonds or advertising. The firms launched their illegal activities in April 2012 and were still engaged in them when they were detected.