Eurojust supports international operation against tax evasion through sham contracts
Eurojust has supported the competent authorities in Germany, Estonia, Latvia, Lithuania and Poland in a coordinated action against a group of suspects allegedly involved in tax evasion through sham contracts with foreign subcontractors. During an operation on 10 October, 39 business premises and apartments were simultaneously searched in all countries involved and several witnesses were questioned.
The perpetrators allegedly concluded sham contracts with subcontractors in Estonia, Latvia, Lithuania and Poland in order to conceal employment relationships in Germany. They are also alleged to have partly exploited the different minimum wage standards in the European Union Member States concerned to evade millions of euros in taxes.
The case was opened at Eurojust in May 2023 at the request of the German law enforcement authorities. Eurojust facilitated the communication, exchange of information and coordination between the national authorities in real time during the joint action day. The Agency also hosted three coordination meetings and facilitated the execution of several European Investigation Orders.
The following authorities took part in this investigation:
- Estonia: Prosecutor General’s Office; Estonian Tax and Customs Board
- Germany: Oldenburg Public Prosecutor’s Office; Oldenburg Tax Office for Investigation and Criminal Cases; Federal Criminal Police Office
- Latvia: Prosecutor General’s Office and Tax and Customs Police Department of the State Revenue Service
- Lithuania: Prosecutor General’s Office; Financial Crimes Investigation Service
- Poland: Public Prosecutor’s Offices in Warszawa, Kraków, Katowice, Mława and Łomża