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(Luxembourg, 17 July 2024) – At the request of the European Public Prosecutor’s Office (EPPO) in Milan (Italy), the Italian Financial Police (Guardia di Finanza) in Varese have arrested two main suspects and executed a freezing order against seven companies under investigation for a major VAT carousel fraud involving luxury cars. Around €7.6 million has been frozen in bank and financial assets, real estate, land and cars.
The investigation, codenamed ’Easy Car’, gathered evidence of fraudulent activities in the luxury car market in Italy. It is alleged that the suspects committed so-called intra-community VAT ‘carousel’ fraud – a complex criminal scheme that takes advantage of EU rules on cross-border transactions between its Member States, as these are exempt from value-added tax (VAT).
It is understood that the fraud scheme involved the sale of 1500 cars from Italy to Czechia, Germany and San Marino, falsely declaring them as intra-community supplies. These cars were then brought back to Italy and registered as Italian cars. It is alleged that as a consequence, the suspects evaded VAT payments, amounting to €7.6 million, on new vehicle registrations, as they falsified the origin of the vehicles.
The total value of invoices for non-existent transactions is around €20 million. The investigative measures have targeted a total of 17 individuals and seven companies.
The judge at the Tribunale di Varese, responding to the EPPO’s request, ordered the house arrest of the two main suspects and a freezing order of approximately €7.6 million.
All persons concerned are presumed to be innocent until proven guilty in the competent Italian courts of law.
The European Public Prosecutor’s Office (EPPO) is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.