Greece’s Independent Authority for Public Revenue (AADE) has dismantled a large-scale tax evasion network that used fake invoices and rapidly dissolving companies to defraud the state of millions of euros.
The Special Unit for Audits and Investigations (DEOS) uncovered €9.6 million in VAT evasion and €8.3 million in income tax evasion, for a total of nearly €17 million.
Key Details of the Case
- Three individuals have been arrested so far, including a foreign woman who declared herself homeless while living in a 280 sq m luxury villa with a swimming pool in the northern suburbs of Athens. She is believed to be the owner and manager of one of the main companies in the network.
- Over 32,000 counterfeit products have been confiscated.
- Authorities have initiated procedures to freeze bank accounts and other assets linked to the scheme.
How the Network Operated
The investigation revealed a sophisticated web of interconnected companies — mainly involved in wholesale clothing, footwear, and related goods — that shared:
- The same individuals as managers or partners
- Common business premises and telephone numbers
- Shared registered addresses
- Repeated patterns of creating new companies after previous ones shut down or went bankrupt
Many of these entities were used exclusively for issuing or receiving fake invoices with extremely high values. Indicative fictitious transactions included:
- €25 million (sole proprietorship)
- €15 million (online shop)
- €28 million (sole proprietorship)
- €40+ million linked to foreign “missing traders”
The network extensively used intra-community transactions with the same foreign companies, often reusing identical stamps and company details.
The probe was based on cross-checking data from on-site inspections, AADE’s myDATA platform, business registries, and ownership records.
The investigation remains ongoing.