A network of companies responsible for simulating VAT-exempt food transactions was dismantled by the authorities and 29 defendants were indicted by the Public Prosecutor (MP) for a scheme that allowed them to obtain fraudulent tax refunds of more than four million euros.
According to Newspaper, companies operated in Portugal, England and Spain and transactions were exempt from VAT as they took place between countries of the European Union. the MP claims illegal profits that network.
The Pakistanis Taher Ali, in preventive detention, and Mohit Mirpuri, in part uncertain, are the masterminds of the scheme, which had 13 accomplices and figureheads. In Portugal they created firms in Moreira de Cónegos, Braga, Boliqueime and Sintra. The scheme had a lawyer from Porto. Two wholesale firms of Jerónimo Martins were accused.
The MP reported that “an intricate invoicing scheme was created between a complex network of national and foreign companies that created for this purpose and through which the goods would fictitically circulate, even more than once by the same operators, in a scheme known as “carousel”, taking advantage of VAT exemptions”.
“When they were traded in national territory, at the end of the circle, their prices were unfeasible for any competitor, often below the cost price (dumping), seriously subverting the competition rules”, explained the MP.