According to the press release of National Tax and Customs Administration of Hungary (NTCA) more than 1 billion forint VAT debt was accumulated in less than a year by a criminal organisation whose four members were caught by the NTCA financial investigators in December. The wealth earned from crime was closed in the value of 280 million forints. Since 2011, this was the 21th criminal organisation working with the carousel technique that has been collared by the NTCA in the Northern Great Plain region.
The criminal organisation was led by a man from Budaörs. Under his direction the perpetrators bought milk from the member states of the European Union, and then they sold it to hypermarkets through several Hungary-based companies
The importing company sold the products on a price increased with VAT to the next member of the chain, however, it did not declare or pay the tax after the proceeds from the sale.
The case came to light during a tax examination of a Szolnok-based limited liability company which was the first actor in the commercial process created with the aim of tax avoidance.
In the course of the investigation based on the warning of the Jász-Nagykun-Szolnok county Tax Office, house-searches in 13 places were held by the financial investigators. Accounting documents were seized, and correspondence revealing economic connections and datum were saved down with the help of tax accountants and IT-professionals.
The identified members of the criminal organisation were caught and interrogated as a suspect because of the reasonable suspicion of financial fraud in a particularly significant value. The District Court of Szolnok ordered the pre-trial detention of three men and the house arrest of a woman.
Hungarian and Slovenian bank accounts, cash, real estates and vehicles were closed in a value of 280 million forints by the financial investigators in order to ensure the damage caused. The court may impose imprisonment from 5 years to 10 years.