The criminal activities caused more than EUR 8.2 million in tax loss to the Hungarian state budget. The OCG used ‘missing traders’ based in Hungary and Croatia. Using fictitious contracts, the ‘missing traders’ were commissioned to perform services, which they did not have the necessary means to perform. The companies were found to have no employees, equipment, or premises.
As part of the scheme, the beneficiary companies received fictitious invoices and transferred funds to the ‘missing traders’ on a monthly basis. The criminal proceeds were then withdrawn and returned in cash to the representatives of the company initiating the transfer. This modus operandi, known as ‘invoice mills’, is increasingly common in the European Union.
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