Suspected fraud with cars - VAT fraud? Charges brought against car dealer
Due to systematic VAT tax fraud in cross-border car trading, the European Public Prosecutor's Office raised charges against three suspects at the District Court of Düsseldorf. According to a statement, this involves more than 10,000 cars. During searches in June 2023 and October 2023, over 1.7 million Euro in cash and real estate worth 300,000 Euro were seized from the three accused.
They are accused of buying cars systematically and then selling them to dealers outside Germany, primarily in the Netherlands and Portugal. This allowed dealers in the Netherlands and Portugal to pay VAT only on their profit margin and not on the vehicle's value. As a result, VAT was evaded in the country of the final sale, causing damages exceeding 18 million Euro. In case of conviction, they face several years in prison. The profit margin is defined as the difference between the cost of acquiring the vehicle and the sales price.
The European Public Prosecutor's Office had already filed the first charges for tax fraud, known as "huracán" (Spanish for hurricane), in March. The proceedings for organized tax evasion on a large scale have been ongoing since June 20, 2023, before the District Court of Düsseldorf (Case No. 014 KLs 2/24).
- The suspects in this case are involved in the car trade, specifically targeting the German market for systematic fraud.
- The Public Prosecutor's Office in Luxembourg has been collaborating closely with their counterparts in the Netherlands and Germany in this case.
- The alleged fraudulent activities have also extended to the sale of cars in Portugal, further complicating the investigation.
- The Düsseldorf Regional Court has been assigned to handle the indictment for the crime, given its expertise in financial and white-collar crimes.
- The three accused have assets in Düsseldorf, which are subject to potential seizure, as per the court proceedings.
- This case serves as a reminder of the global nature of organized tax fraud and the importance of international cooperation in combating such crimes.
