Three people have been arrested in Cyprus as part of an investigation into an alleged €114 million VAT fraud involving smartphone sales, the European Public Prosecutor’s Office (EPPO) has announced.
Two further suspects were arrested in Germany and Italy at the request of the EPPO’s Munich office, according to its statement issued on 16 October.
Investigators suspect the group operated a cross-border VAT carousel scheme through companies and “missing traders” in Germany, Albania and Sweden. Estimated tax losses total €80 million in Sweden and €34 million in Germany.
The five suspects are believed to have established and controlled the alleged scheme.
Authorities conducted 12 searches at premises linked to suspects and companies under investigation. Up to €80,000 was frozen in bank accounts, while cars and property were seized in Cyprus, Greece and Italy.
Cyprus’ Tax Department, police and financial intelligence unit MOKAS supported the operation, alongside authorities in Germany, Greece and Italy.
The case is linked to the EPPO’s wider Midas investigations into cross-border VAT fraud.
All those concerned are presumed innocent unless proven guilty before the competent German courts.
Source: Cyprus News Agency (CNA)