NCJ Number
28807
Journal
Revue de droit penal et de criminologie Volume: 54 Issue: 2-3 Dated: (NOVEMBER-DECEMBER 1973) Pages: 237-252
Date Published
1973
Length
16 pages
Annotation
TECHNIQUES USED BY DISHONEST BUSINESSMEN IN FRANCE TO OBTAIN VALUE-ADDED TAX REFUNDS FROM THE TREASURY ON BOGUS EXPORT DEALS, AND APPLICATION OF THESE TECHNQUIES IN TAX-FRAUD DEALS IN THE EUROPEAN ECONOMIC COMMUNITY (EEC).
Abstract
SPECIALIZED, WELL-PAID PERSONNEL RECRUIT FIGUREHEAD MANAGERS FOR FICTITIOUS FIRMS THAT PRODUCE THE DOCUMENTS TO INDICATE THEY ARE ACTIVELY ENGAGED IN EXPORTING MERCHANDISE. DOMESTIC BUSINESS TRANSACTIONS ARE SUBJECT TO THE VALUE-ADDED TAX BUT EXPORT DEALS ARE EXEMPT. THE BOGUS DOCUMENTS INCLUDE COMPUTATION OF THE VALUE-ADDED TAX, SO CLAIMS FOR REFUNDS ARE HONORED BY THE TREASURY FOR FICITIOUS EXPORT DEALS. THE RECRUITERS RENT OFFICES AND ARRANGE FOR THE OPENING OF BANK ACCOUNTS BY THE FIGUREHEAD MANAGERS, BUT IT IS THE BUSINESSMEN WHO EMPLOY THE RECRUITERS WHO TAKE THE BULK OF THE FRAUDULENTLY OBTAINED PROFITS. THERE NUMEROUS, MORE OR LESS SOPHISTICATED VARIATIONS OF THIS BASIC TECHNIQUE. THIS FRAUD CAN BE DETECTED BY THE FACT THAT THE DOCUMENTS INCLUDE VALUE-ADDED TAX COMPUTATION. HONEST BUSINESSMEN DO NOT INCLUDE THIS IN CONNECTION WITH EXPORT DEALS. --IN FRENCH SEE NCJ-32511 FOR ENGLISH TRANSLATION.