Police smash EUR 20m luxury VAT car scam
31 March 2005, MADRID-The Spanish Guardia Civil has smashed a gang which was behind a EUR 20 million VAT fraud involving luxury cars.
31 March 2005
MADRID-The Spanish Guardia Civil has smashed a gang which was behind a EUR 20 million VAT fraud involving luxury cars.
Police have arrested eleven members of the gang and linked six other members of the organisation.
The gang were not paying VAT on luxury cars which they were importing to Spain.
Between 2002 and 2004, they brought 3,500 cars to Spain without declaring the VAT on the vehicles, Guardia Civil sources said.
The arrests happened in Guipúzcoa, Navarre, Madrid and Zaragoza and suspects have all been accused of tax offences.
Police seized more than 50 vehicles in the operation, codenamed San Diego. The cars were seized in Madrid, Navarre, Zaragoza, Guipúzcoa, Barcelona, Guadalajara, Teruel and Asturias.
The police operation started alter irregularities began to emerge in the way the cars were being bought.
The cars were bought by a third party not the company which was transporting them.
It emerged that a third company was being created simply to carry out the fraud.
Police blocked 18 different bank accounts in an effort to trace the cash linked to the fraud.
[Copyright EFE with Expatica]
Subject: Spanish news