Costa News Spain Breaking News | English News in Spain.
A SCAM defrauded authorities out of €20 million in VAT on mobile phone sales across Spain.
Laundering proceeds was mainly done through the purchase of real estate.
Over 280 accounts that were used to launder unpaid taxes have been blocked.
READ MORE
The Guardia Civil, in conjunction with the Tax Agency, has arrested 15 people who have been involved in a long-running scam since 2019.
The gang established a business network in Spain that consisted of 20 companies, which included mobile phone stores that avoided paying VAT.
The raids on 23 addresses resulted in five arrests, in the Malaga/Valencia area, in Madrid and in Barcelona/Cadiz/Sevilla.
Officers seized 9,000 mobile phones, more than €200,000 in cash, 35,500 US dollars in cryptocurrencies and 75 vehicles.
When promotions are offered, large stores will import or buy phones in bulk.
The gang then created a complex process of resale, which made it difficult for authorities and tax authorities to find the items.
The investigators were confused by bogus parcels, which claimed to contain mobile phones but actually contained wood or bottles filled with water.
The phone units were sold as ‘refurbished’ to buyers in Spain and across Europe via online platforms.
Low prices allowed them to undercut competitors
