The Financial Police has arrested a third director of the Gallarate paper company. A complex fraud scheme in the IT components sector had previously been exposed, which had led to the arrest of a couple for a 50 million euro tax fraud
GALLARATE – The investigations of Gallarate Financial Police have led to a new development in the case of maxi tax evasion from 50 million euros, which had already seen the arrest of a couple last November. A third director of the Gallarate paper company was recently arrested, revealing further details of a complex fraud scheme in the IT components trading sector. (See: Gallarate, a couple of entrepreneurs carried out a 50 million euro tax fraud. Arrested)
Carousel fraud and VAT evasion
The investigation revealed a complex fraud mechanism, known as “carousel fraud“, used to evade value added tax (VAT). This system exploits fictitious companies, calledpaper mills“, which import goods from European Union member countries and resell them on the national market without fulfilling tax obligations. This allows goods to be placed on the market at prices below cost, usually equal to the evaded VAT, creating unfair competition and distorting the market.
The investigation and arrests
There Financial Policecoordinated by European Prosecutor’s Office (EPPO) of Milan, conducted an in-depth investigation which led to the arrest of three administrators involved in the fraud scheme. The investigation revealed that the fraud was facilitated by the issuing and use of invoices for non-existent transactions, via a network of paper and buffer companies. These companies imported formally goods like air pods, hard disk and other computing devicesand then resell them on the Italian market without paying the VAT due.
The latest arrest concerns a person who acted as intermediary between foreign companies, the Italian ones already identified and end customers. This role was crucial to the functioning of the entire fraudulent operation, which saw the importation of over 3 million computer components.
Seizures and tests
During the arrest of the third suspect, the financiers carried out searches in the premises used by the subject and found two Rolex luxury watches And numerous smartphones And computing devices. These materials were seized because they were allegedly used for the fraudulent operations. Furthermore, three rifles were found, legally held with weapons licences, which were withdrawn and reported to the Prefectural Authority for the revocation of the license.
Economic and social implications
Tax evasion is a phenomenon that represents a serious obstacle to economic development, undermining trust between citizens and the State and penalizing social equity. The distortion of the market and the unfair competition created by tax fraud take away resources that could be allocated to interventions in favor of the weakest social groups.
Conclusions
The investigations of the Gallarate Financial Police, conducted with meticulous attention to both the administrative-tax and criminal aspects, have led to significant results in the fight against tax evasion and fraud. However, the responsibility of the suspects will be definitively ascertained only with an irrevocable sentence of conviction, reiterating the importance of the principle of presumption of innocence until proven guilty.
