Undeclared income, fictitious transactions of millions and thousands of ‘monkey’ products were identified by the auditors of SDOE

Undeclared income, fictitious transactions of millions and thousands of “monkey” products have been identified by SDOE auditors in audits over the past two months to tackle VAT fraud, combat counterfeit trade and enforce and maintain fraud. existing labor legislation.

In detail, the most important cases of audits and their results by the operational directorates of Attica and Macedonia:

I. OPERATIONAL ADDRESS SDOE ATTICA

A. INTRA-COMMUNITY FRAUD IN THE SECTOR OF VAT.

An inspection was carried out on nine legal entities, for which there were indications of non-actual operation, and it was found that they made exports with VAT exemption, mainly to Italy. In the three years 2016-2018, they issued a number of tax documents to non-existent Italian entities (“Missing Traders” – Missing Traders), with a total value of over 32,000,000 euros, with the corresponding VAT. to exceed 7,000,000 euros.

B. CONTROLS OF E-COMMERCE BUSINESSES

The Agency carried out audits of nine companies, which had developed illegal activity of trafficking in goods on the market, which were either pirated or constituted illegal counterfeiting. The trade of these products was mainly carried out remotely, through websites. During these inspections, a large number of counterfeit products were confiscated.

After a thorough investigation that followed, with cross-references of tax data and with the total utilization of the collected material, it was ascertained the existence and activity of a circuit of natural persons, who set up virtual companies in the name of foreign entities, in order to obtain illegal financial gain. 548 euros, related to forgery, fraud, acceptance and distribution of crime products, and violation of the law on trademarks, as well as tax evasion for a total amount of VAT. 1,395,265 euros. A case was filed against the persons involved for the above offenses, which was forwarded to the Athens Prosecutor’s Office.

C. GRANTS OF GRANTS

In the context of audits carried out by the Service in companies, regarding the observance of the conditions of application of the Development Law 3299/2004, the following cases of delinquent behavior were identified:

Industrial Enterprise circumvented the provisions of the Development Law, receiving high value tax data from virtual companies. Information leaflets were prepared and sent to the respective tax services, for fictitious transactions of the audited with two contracting companies, for transaction amounts with a total value of 22,400,000 euros.

Three hotel units in the South Aegean violated the provisions of Development Law 3299/2004. Audit reports were prepared to the competent Services for amounts totaling 5,800,000 euros.

Agricultural Cooperative in the region of Messinia violated the provisions of Development Law 3299/2004. An audit report was prepared to the competent Service for amounts totaling 598,000 euros.

D. LABOR LAW CHECKS

Utilizing information and carrying out an audit for the implementation of the labor legislation in an office complex in Kallithea, where the Greek and foreign companies were based, the illegal operation of a foreign company was ascertained.

In particular, the foreign company with object of work “provision of IT services”, used an office in Kallithea which employed Greek employees since 2018. The employees had not been declared to the Labor Inspectorate, while the company had not been registered in the tax register and operated without A. Φ.Μ.

The place of business of the company, was initially leased by another legal entity, and specifically by a Bank based abroad. The Bank then leased the site to a controlled foreign IT company to remotely support the Bank’s network. Neither company had submitted a declaration of operations in Greece, with the result that the Greek authorities are not aware of their activities within the country. Thus, foreign companies avoided any control over tax, labor or other legislation. It is estimated that from the end of 2018 to the middle of 2021, the IT company had a turnover in Greece of over 260,000 euros.

Audit reports were prepared to the competent services, in order to issue a Greek VAT number ex officio. for the two foreign companies, in order to impose the corresponding fines, to charge the evading taxes, as well as to certify the insurance contributions. Also, for the irregular activity of the foreign bank, the audit was notified to the Bank of Greece.

2. In inspections carried out in companies of health interest, four catering companies and a night club were identified, which employed uninsured staff and staff outside working hours. The audit reports were prepared and sent to the competent services for the imposition of the relevant fines.

II. OPERATIONAL ADDRESS SDOE OF MACEDONIA

A. GRANTS OF GRANTS

In the context of audits carried out by the Service in companies, regarding the observance of the conditions of application of the Development Law 3299/2004 and the receipt of subsidies & grants, the following cases of delinquent behavior were identified:

An audit of an industrial unit in Central Macedonia, which had received a subsidy of 458,248 euros, found irregularities in the coverage of the same participation, for which fines of 352,990 euros are calculated.

An audit of an industrial unit in Epirus, which had received a subsidy of 967,839 euros, found irregularities in the coverage of the same participation, for which fines of 514,466 euros are calculated.

An audit of an industrial unit in Western Macedonia, which had received a subsidy, revealed the use of canceled and forged bank documents to cover the same participation of the investment and non-continuation of the operation of the unit for the period provided by Development Law 3299/2004. The foreseen sanctions were imposed and an audit report was prepared to the competent Service for amounts totaling 1,645,000 euros.

An audit of a hotel unit in Thrace, which had received a subsidy, found that the unit did not continue operating for the period provided by the Development Law 3299/2004. Audit reports were prepared to the competent Services for amounts totaling 214,691.35 euros.

An audit of a food production company to receive a grant, within the framework of a co-financed NSRF program for production of products according to a study by Hellenic University, found that the project was not implemented under the responsibility of the company, resulting in the recovery of the received advance payment of 175,000 euros.

B. PROPERTY INCREASE CONTROLS

After an audit for money laundering with a basic offense of tax evasion in two perpetrators, it was found an increase in property totaling 1,497,783 euros and 4,483,341 euros respectively, during the years 2008-2017. The expected tax benefit is estimated at 1,973,771 euros.

An audit of the property status of a natural person, revealed the concealment of income amounting to 293,809 euros during the years 2016-2019. An information report was prepared to the competent Tax Office. with estimated tax revenues of 96,956.92 euros.

C. IMITATIONS OF TRADING IMITATORS

In an audit carried out by the Service in a company in the center of Thessaloniki, a total of 3,679 products (perfumes, creams, etc.) were identified and confiscated, which were imitations / falsifications of branded Company Trademarks.

The employees of the General Directorate of SDOE, with a high sense of duty, will continue with greater intensity and determination their fight for the protection of the financial interests of the Greek State and the EU, as well as for the implementation and observance of the current legislation for the protection of consumers, companies and employees.