Investigation uncovers large-scale tax fraud scheme involving import of luxury cars

The Bulgarian authorities have disrupted a criminal group for large-scale tax fraud in relation to import of luxury cars. The losses caused to the state budget in the last year alone was more than BGN 6 million, the National Investigation Service said at a briefing on November 20.

The operation is under the leadership of the Prosecutor's Office with the participation of the Ministry of Interior and the National Revenue Agency (NRA).

The investigation was conducted in Sofia, Varna, Plovdiv, Burgas, Kostinbrod and Troyan.

A total of 30 addresses were searched, 14 of which were accountancy firms. A large amount of documentation and information, computer configurations and a large number of e-signatures were seized.

According to the investigators, the criminal scheme involved VAT evasion. An unregulated turnover of BGN 30 million was detected, on which VAT should have been charged, but this was not done. The scheme involved a series of "shell" companies deducting tax credits under the VAT Act without having any basis for doing so.