The leaders of the criminal alliance of the pet food company, which is also known on the international stage, have been shut down with a billion-dollar VAT fraud by the NAV employees. The damage to the budget was fully recouped by the action.
The factory in Hajdúság imported the raw materials needed for the production from abroad with the help of a closely related company, thus reducing its VAT payable to practically zero, thus obtaining the goods at a substantially net price. To avoid having to pay tax to the other company, it repurchased the finished product from the manufacturer at the same value and set up another cross-border invoicing chain to reduce the tax on domestic sales.
To interrupt the crime, NAV’s financial investigators in northern Hungary searched at 29 locations with the involvement of IT specialists, auditors and patrols. In addition to the companies’ complete accounting material and electronic correspondence, the investigators also seized six vehicles, two properties and the factory site for a total of more than two and a half billion forints to insure the damage caused.
NAV staff interrogated seven suspects, three of whom are suspected of budget fraud in a conspiracy. Offenders can expect up to 15 years in prison for suspected commercial fraud, which causes particularly significant property damage.
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