Latvia’s State Revenue Service’s Tax and Customs Police has dismantled a criminal group that has caused damages worth EUR 250,000 to the state budget.
Through numerous investigative activities police determined that this criminal group may have used several mutually unrelated companies in Latvia to defraud VAT and transfer funds to their bank accounts. Additionally, members of this criminal group may have had used bank accounts of multiple private persons in different European countries to hide the defrauded funds, BNN was told by SRS.
One active IT company managed by a member of this criminal group is involved in the criminal process. This company submitted annual accounts and declarations to SRS, calculated tax amounts to be paid to the state budget. However, the company did not perform payments within the established order and thereby may have avoided payments of taxes or other fees to the state budget. As it was determined in the investigation, a relative of one of the members of the criminal group worked in SRS in a managing position for a long time.
As part of the criminal process, SRS officers performed searches in multiple companies, apartments and vehicles owned by members of the criminal group in Riga and Vidzeme. Evidence was collected and confiscated, including documents, electronic data storage devices, code cards, code calculators, transaction cards, cash and stamps. On top of that, officers also found an herbal narcotic substance on one of the suspects.
Two have been made suspects in this criminal case, and one of them has been put under arrest.