Latvian authorities dismantle criminal group engaged in VAT fraud

In November 2022 Latvia’s State Revenue Service (VID) Customs and Tax Police officers apprehended members of a criminal group that was engaged in value added tax fraud (VAT). This group’s operations are believed to have caused damages worth more than EUR 190 000 to the state budget, VID reports.
Police discovered and confiscated cash, a collection of silver and gold coins, computers and accounting documents, including «manipulated accounting accounts», as well as narcotic substances and live firearm ammo.
Investigators uncovered that the criminal group was active between August of 2021 and August of 2022. The group’s operations were aimed at selling different goods and services (perform VAT-applied transactions) to companies operating in Latvia and avoid paying VAT in the process.
According to VID, the group was coordinated – they organised and executed various non-existent transactions and listed them in VAT declarations of companies controlled by the group. This caused damages worth EUR 190 000 of damages to the state budget.

Companies in question are engaged in wholesale of various light and heavyweight vehicles and tractors.

As part of the criminal procedure commenced by VID Tax and Customs Police, police officers performed actions in Riga, Marupe and Kekava. This includes 19 searches in locations of interest to the investigation (homes, offices and vehicles).
During those searches officers found and confiscated evidence, including cash (EUR 38 255), a collection of silver and gold coins, accounting documents, narcotics, live firearm ammo, mobile phones, computers and data storage devices.

Police also arrested a Mercedes Benz S350 and BMW 635, as well as seven pieces of real estate in Marupe and Kekava.

In the interest of the investigation no more information is provided about this case. VID reminds that no person is considered guilty until his or her guilt has been proven in accordance with the law.