A local court last week implemented a freezing order worth more than €6.8 million ($7.34 million) against four people and a company suspected of value-added tax (VAT) fraud connected to the unauthorized import of fabric from China at the request of the European Public Prosecutor’s Office (EPPO) in Bologna, Italy.
In addition to confiscating over €27,000 (~$29,155) in cash during searches, the Italian Financial Police (Guardia di Finanza) of Bologna carried out the freezing order and succeeded in freezing over €620,000 (~$669,495) on the suspects’ bank accounts, according to an EPPO release.
The inquiry focuses on eight people and seven businesses that are allegedly involved in VAT evasion related to the importation into the European Union (EU) of over 13,600 tonnes of textiles from China valued at around €63 million.
The individuals are accused of smuggling, falsification, and producing fictitious invoices. They include Chinese business owners and managers of customs shipping companies in Bologna and Prato.
They failed to transfer the products to tax warehouses even after declaring the imports, enabling for instant release without paying VAT. Assets valued at approximately €7.3 million (~$7.88 million) were frozen in April of this year as a result of this plan, which is anticipated to have generated a VAT loss of over €13 million (~$14 million).
The independent EU public prosecution office, or EPPO, is in charge of looking into, prosecuting, and trying cases involving financial crimes.
