EUR 173m luxury car fraud revealed

4 December 2003

MADRID – Luxury car importers were at the centre of an investigation into a EUR 173 million tax fraud, it was reported Thursday.

The Spanish Tax Agency said VAT was not paid on 15,000 high-value vehicles which were shipped into the country from other EU countries.

Ruiz Gallud, of the tax agency told a press conference that the fraud had allegedly been going over the last year.

Importers avoided the tax by stating a far lower value for each car, he said.

The fraud involved 54 companies which had been accused of fiscal offences and had been notified that they faced formal tax inspections.

Another 150 companies said to be involved in the same racket were being investigated.

The companies involved were not car dealers in Spain or the people who bought the cars, said Gallud.

He added that many second-hand cars were involved in the fraud.

Gallud said this type of fraud was “not widely used” but the tax agency was determined to stop it before it became more widespread.

Thirty per cent of the cars involved came from Germany.

[Copyright EFE with Expatica]

Subject: Spanish news