The National Police and the Tax Agency dismantle one of the most important schemes in the purchase of cars from the EU. There are eight detainees involved in crimes against public finances, document falsification and money laundering. They used at least 23 commercial companies, created for these purposes, which in four years would have handled some €365,000,000 in operations and whose VAT has not been paid into the public coffers. There are 37 high-end vehicles seized, prestigious brand watches, almost €170,000 in cash, 49 homes, 27 parking spaces, 10 rural properties, a 16 meter long boat and 81 blocked bank accounts.

November 10, 2008. The Tax Agency, in collaboration with the National Police, have discovered a scheme that had defrauded 60,000,000 euros in VAT for the intra-community acquisition of luxury vehicles from Germany, Holland and Belgium. Eight people involved in crimes against the Public Treasury, falsifying commercial documents and money laundering have been arrested in the operation. They used at least 23 commercial companies, created for these purposes, which in four years would have handled some €365,000,000 in operations and whose VAT was not paid into the public coffers.

The investigations began in 2006 by the Tax Agency delegation in Alicante in collaboration with the National Fraud Investigation Office (ONIF) and have concluded with the arrest of four people in Alicante, one in Onteniente (Valencia), two in Madrid and another in Albalate de Zorita (Guadalajara). The operation has been carried out by the Central UDEF, attached to the General Commission of the Judicial Police, in collaboration with the Provincial Brigade of the Judicial Police of Alicante, the Higher Headquarters of Valencia and the Tax Agency.

Plot operation

The classic plot outline is as follows: A fraudulent operator registered in the Registry of Intra-Community Operators is placed in the first step of import and simulates carrying out product purchase operations in the European Union (EU). As these are intra-community operations, they are exempt from VAT. This first Spanish operator is called trout and is usually a limited company, with little or no capital and has insolvent individuals as administrators or representatives.

This first company trout transmits the vehicles in invoices with VAT to other companies screen , which act as a buffer against the action of justice and the treasury. The VAT charged here is not declared or paid into the Public Treasury by the trouts . The companies screen are instrumental companies, empty of patrimonial content and controlled by the same organization as the first ones, both acting in perfect harmony. The only purpose that the criminal organization pursues with this type of entities is to serve as a firewall: The more entities of this type are placed, the more difficulties are generated for their discovery.

The scheme concludes when the cars pass to a distribution businessman who has previously ordered them, who sells them to end customers or other distributors in Spain, in a concerted action with trout and screens. The VAT not paid in the first phase by the trout in the coffers of the Public Treasury is distributed among all the steps of the criminal chain. Sometimes the VAT not paid is even used to lower car prices, which represents unfair competition for companies that do comply with their tax obligations.

Searches carried out and effects intervened

The investigation has culminated in the arrest of eight people. Seven searches have been carried out in Alicante, Madrid, Guadalajara and Valencia, in which 37 luxury vehicles have been seized (Porsche, Mercedes, Lexus, Maserati, Jaguar, BMW,...), two yachts, almost 170,000 euros in cash, watches of prestigious brands and diverse documentation. In addition, 81 current accounts of the organization have been blocked and a preventive annotation has been carried out regarding 86 properties (homes, parking spaces and rural properties).