The Independent Authority for Public Revenue (AADE), through its DEOS task force, has uncovered an extensive network of “front men” and “ghost companies” which, over the past three years, used 4,200 tax identification numbers (AFMs) to accumulate debts totalling more than € 203 million. Using this method, the network ran up debts of more than € 203 million, of which € 68 million relates to VAT and income tax owed to the AADE, while € 135 million consists of social security contributions owed to the e-EFKA social security fund.
Eighteen arrests have already been made as part of the operation. Those arrested include well-known nightlife entrepreneurs who own dozens of popular bars and nightclubs in Thessaloniki and Halkidiki.
According to the announcement by the Independent Authority for Public Revenue, the investigation, which involved 60 AADE auditors and seven prosecutors, covers more than 700 business premises (in Thessaloniki and Halkidiki, as well as other parts of the country). Over the past few years, more than 2,000 businesses in the food service and nightlife sectors operated at these locations, using 1,300 “front men” and 700 individuals acting behind the scenes.
More than 4,200 tax identification numbers are implicated in the case overall.
Following a months-long investigation, the auditors identified the business owners who were actually running the operations while hiding behind individuals who were nominally listed as the companies’ managers and sole shareholders.
