Czech-Slovak investigation team unveils massive VAT-Related fraud

A joint Czech-Slovak economic-crime investigation team has uncovered VAT-related fraud amounting to over €6.5 million. In two separate operations, the joint team of investigators uncovered dozens of chains in which more than a hundred companies were invoicing each other for fictitious or overpriced services. The first case involved companies that invoiced advertising costs in motorsport. According to Frantisek Urbanek of the Regional Police Directorate in Zlin in the Czech Republic, the head of the criminal gang was a Czech citizen who has been taken into custody. The money coming from the criminal activities was collected in cash mainly in Slovakia. Charges have been pressed against five Czech citizens, five Slovak citizens and ten trading companies. Slovak Financial Administration president Jiri Zezulka said that investigators will now focus on 12 end-companies that have dodgy invoices recorded in their costs.