Bulgarian Police Exposes Tax Draining Scheme through Energy

Crime | December 10, 2010, Friday // 14:23|  views

Bulgaria's Secretary General of the Interior Ministry, Kalin Georgiev, has announced that this is the first time the police exposes a tax draining scheme though energy. Photo by BGNES

Bulgarian police have discovered for the first time a scheme for illegal drain of value-added tax (VAT) from energy companies, the Secretary General of the Interior Ministry, Kalin Georgiev, has announced.

“The scheme was very interesting. The energy company was engaged with delivery and transit of electricity. The analysis by the police showed that the transited quantity through the Bulgarian trader do not correspond to the declared amount through the tax agency. This means that large amount of VAT has been illegally retrieved,” Georgiev said.

The special operation has been conducted on the territory of the Bulgarian cities Stara Zagora, Kazanlak, Varna, Burgas and Sofia.

In Georgiev’s words, the check by the police is for the period 2007-2010. He has explained that the damage on the unpaid excise duty on electricity is about BGN 300,000 per month. For the period of 4 years, the whole damage amounts to about BGN 14,4 M.

The company also exported more electricity than the company’s balance and it caused damage of about BGN 2,738,000, which do not appear on invoices.

The operation continues, but the owner of the company has been detained.

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Tags: VAT, VAT draining, energy, Kalin Georgiev, police


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