A major tax evasion network generating enormous profits through a sophisticated scheme involving fake invoices, companies that rapidly went bankrupt or shut down, and vanished traders has been uncovered by the Special Unit for Audits and Investigations (DEOS) of the Independent Authority for Public Revenue (AADE).

So far, three people have been arrested, including a foreign national woman who declared herself homeless but was found to be living in a 280-square-metre villa with a swimming pool in the northern suburbs of Athens. She is allegedly the owner and manager of one of the main companies involved in the network.

Authorities have so far identified €9.6 million in VAT tax evasion and €8.3 million in income tax evasion.

Measures have been launched to freeze bank accounts and other assets, while more than 32,000 counterfeit products have been confiscated.

Investigators collected and cross-checked data from:

• their own inspections,
• AADE’s digital platforms (myDATA),
• the business registry,
• company ownership records,
• company management and representation details.

The investigation revealed an extensive and highly interconnected network of individuals and legal entities sharing common characteristics in terms of:

• their operating methods,
• administrative structures, and
• transaction patterns.

Specifically, the same individuals repeatedly appeared as participants in different companies, either as managers or as general or limited partners.

In addition, new companies were repeatedly established immediately after previous businesses ceased operations or after changes in ownership structures.

At the same time, individuals and companies involved in the network used:

• common business premises,
• common telephone numbers,
• common registered addresses,
• shared corporate structures.

Authorities say these elements demonstrate significant links between the companies under investigation.

The investigation found direct or indirect connections between foreign nationals appearing as participants in several businesses with similar activities and identical business structures.

These links were identified through:

• the same individuals participating in multiple companies,
• the use of common telephone numbers,
• shared professional premises and addresses,
• similar business activities, mainly in wholesale clothing, footwear and related goods,
• repeated involvement of the same individuals in different corporate entities.

Investigators also found that most of these companies were used exclusively or primarily for issuing or receiving fake invoices of extremely high value.

Indicative cases identified so far include:

• Sole proprietorship: €25 million in fictitious transactions
• Online shop (general partnership): €15 million in fictitious transactions
• Sole proprietorship: €25 million in fictitious transactions
• Physical store (limited partnership): €2.5 million in fictitious transactions
• Sole proprietorship: €28 million in fictitious transactions
• Import company (general partnership): €3.25 million in fictitious transactions

From the analysis of tax records and documents used for declared intra-community transactions, authorities found that different Greek companies within the network appeared to trade with the same foreign companies, repeatedly using identical company stamps, identification details and other commercial characteristics.

So far, three individuals have been arrested, one of whom is a foreign woman believed to be the owner and manager of one of the main companies. Despite declaring herself homeless, she was found to be living in a 280 sq m villa with a swimming pool in Athens’ northern suburbs.

The network also allegedly involved foreign “missing traders” who appear to have purchased goods worth more than €40 million.

Authorities have so far confirmed tax evasion of €9.6 million in VAT and €8.3 million in income tax. Procedures to freeze accounts and other assets are underway, while more than 32,000 counterfeit items have been seized.

The investigation is ongoing.