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International Internet Magazine. Baltic States news & analytics Thursday, 09.07.2020, 16:35

VAT fraud case worth over EUR 1 mln sent to Latvian prosecutor's office

BC, Riga, 12.02.2018.Print version
The Tax and Customs Police under the Latvian State Revenue Service has sent to the specialized prosecutor's office a value-added tax (VAT) fraud case worth over EUR 1 million, asking that criminal charges should be brought against three persons, the State Revenue Service said, cites LETA.

The Latvian investigators in cooperation with the Estonian law enforcement agencies established that the three individuals in question had organized a series of fictitious transactions for purchase of cement.

Under the criminal scheme, Latvian companies were supposedly purchasing cement for supply to a company in Latvia, although in fact the company was receiving cement from a cooperation partner in Estonia. But the Latvian company submitted to the State Revenue Service false information about the transactions, thus illegally reducing the amount of VAT it was required to pay into the Latvian state budget.

The loss to the Latvian state budget from the above VAT fraud scheme is EUR 1.035 million.

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