Operation 'Iroko'

• The searches that are being carried out today represent the beginning of inspections of 119 companies and 38 related individuals
• Previous investigations have made it possible to detect inventory accounting manipulations that would facilitate the declaration of discrete profits and would serve to conceal the concealment of sales.
• The device deployed in the fifteen CCAA of common territory has the participation of more than 520 officials from the Tax Agency

March 14, 2019.- The Tax Agency has launched a large nationwide operation against tax fraud in the furniture manufacturing and marketing sector. The operation, called 'Iroko', involves the beginning of inspection actions on a total of 119 companies and 38 natural persons, partners and administrators of the companies investigated, starting from the entry and registration in 112 premises located in the fifteen Autonomous Communities of the territory. common.

The device deployed by the Agency affects premises of both furniture manufacturers and wholesalers and retailers in the sector located in: Andalusia (34), Aragon (6), Asturias (3), Balearic Islands (1), Canary Islands (6), Cantabria (1), Castilla-La Mancha (1), Castilla y León (5), Catalonia (20), Extremadura (2), Galicia (5), La Rioja (1), Madrid (6), Murcia (5) and Valencian Community (16). The actions have begun at the opening time of the premises by the Inspection Tax and its Computer Audit Units (UAI) in the premises of the investigated companies, in order to directly access the documentation and real accounting or auxiliary information, including the computer information processing systems.

The experience of operations carried out previously shows that the presence of the Administration in the premises or homes where the economic activity is carried out and where the management of the business is carried out allows a more effective fight against the underground economy. As this is an administrative action, entry and registration actions do not imply arrests.

Previous research

Since 2013, the furniture sector has maintained five years of consecutive growth linked to the rise of the real estate market. In 2017, the sector generated a turnover of more than 4.3 billion euros and all manufacturing subsectors increased their turnover.

In this context, the Department of Financial and Tax Inspection of the Tax Agency carried out a global analysis of the furniture sector, carrying out cross-checking of information and analysis of companies dedicated to both manufacturing and wholesale and retail marketing. .

The study included an analysis of the Corporate Tax declarations of the gross margins on sales, net margins, margin on supplies, cash movements (mainly in bank accounts under the ownership of the companies) and payment with cards, as well as others. indications of economic capacity observed in the administrators, authorized account holders or partners.

Stock irregularities

Additionally, the inspection actions previously carried out in the furniture sector, both at the level of manufacturers and in relation to wholesale and retail trade, had revealed certain distortions in the evolution of sales and stocks that evidenced the making undeclared sales.

Based on this analysis and this previous experience, the Agency's investigators observed that certain companies manipulated the accounting relating to their inventories, in order to declare a discrete level of profits and, in this way, conceal the concealment of sales. At the same time, there were indications that the group affected by the operation that began today could be using concealment software that would allow both stocks and real sales to be manipulated.

All of this has contributed to the design of the 'Iroko' operation, which has been coordinated by the Inspection Department of the Tax Agency, with the participation of more than 400 officials from the Inspection Area, including personnel, in the entry and registration operation. of the UAI and the National Fraud Investigation Office, as well as with the support of police agents and 120 Customs Surveillance officials of the Agency.

Towards improved voluntary compliance

Along with the regularization of tax fraud that finally emerges, both this and all the sectoral actions developed in recent years by the Tax Agency have a second objective consisting of transmitting a dissuasive message to the corresponding sector, trying to encourage a change in attitude. of entrepreneurs, so that they redirect their activities and improve their subsequent tax compliance in the voluntary payment period, in line with the general guidelines of the 2019 Annual Tax and Customs Control Plan. The evolution of future tax control plans will depend on these changes in the attitudes of specific businessmen, which will focus especially on