Netherlands’ Fiscal Information and Investigation Service (FIOD) is investigating a tax fraud involving over 400,000 euros ($484,729) in sales tax underpayments. The FIOD launched its criminal investigation after an audit by tax authorities revealed discrepancies.
As part of this investigation, the FIOD has searched a house in Amsterdam and a business premises in Deventer. The authorities suspect a 38-year-old Amsterdam local of knowingly and willfully filing incorrect tax returns and presenting false documents in his application. The FIOD has now seized both physical and digital properties of this suspect.
The suspect owns a company through which he delivered goods to buyers. However, he received partial payments in cash or directly in his personal bank account. He was thus able to evade part of his due taxes by showing an artificially low turnover.
The suspect continued his fraudulent practices for several years. He filed low sales tax returns and as a result, low corporate tax returns too. Furthermore, though he benefited financially through private bank transfers, he failed to declare this added income in his income tax returns too.
Source: FIOD, Netherlands