Greek authorities have uncovered a large-scale tax fraud scheme involving fake invoices, creating a financial loss of more than €12 million to the state. Police investigations revealed a network of 370 so-called “ghost companies” used to submit fraudulent tax refund claims.
The criminal organization, whose members were charged with serious offenses, including organizing a criminal network, tax fraud exceeding €120,000, money laundering, and illegal possession of firearms and ammunition, operated systematically between 2023 and 2025. Eighteen individuals, including the ringleaders, were arrested in a police operation on October 1.
How the Scheme Worked
According to prosecutors, the network filed false tax returns to claim large refunds on value-added tax (VAT) or withheld income taxes, using companies that existed only on paper. The organization:
- Registered common addresses for multiple fictitious companies or managers, often in adjacent areas.
- Set up companies that never conducted real business, had no employees, and often no bank accounts.
- Used “front men” as company representatives and registered these entities in the General Commercial Registry.
- Uploaded fake invoices to the government’s electronic tax system, MyData, to create the appearance of legitimate business activity.
- Declared high-value transactions between nonexistent companies to justify inflated tax refunds.
In reality, none of these transactions took place, and the invoices were never backed by actual banking operations. To avoid detection, the group continually created new ghost companies, changing managers frequently to maintain the facade of activity.
Financial Gains
The network’s illicit gains totaled €4,957,276.27. Outstanding withheld tax amounts are estimated at €3,771,005.32, while the total cost to the Greek state—including halted collection processes due to investigations—amounts to €12,132,695.20.
The scheme even involved using ghost companies to issue fake invoices to real businesses, inflating expenses and losses for tax evasion purposes.
Evidence Seized
During coordinated raids on homes, accounting offices, a prison cell, offices in a football stadium, and vehicles, police seized:
- Bank checks and numerous invoices
- Bank passbooks
- Two revolvers, a stiletto knife, and a hunting rifle
- Cash totaling $652 and £32
- Multiple bank cards and official stamps
- €499,940 in cash
The suspects have been brought before the competent prosecutor, while digital evidence will undergo further forensic examination at the Directorate of Forensic Research.
