STATE - VICTIM OF ORGANIZED CRIME - NCJRS TRANSLATION

• NCJ Number: 32511
• Author(s): J COSSON
• Date Published: 1975
• Length: 12 pages
• Sponsoring Agency: US Dept of Justice; US Dept of Justice NIJ Pub
• Corporate Author: National Institute of Justice/NCJRS
• Publication Format: Document
• Language: English
• Country: United States of America
• Note: TRANSLATION BY NELSON ROSE FROM AN ORIGINAL WORK IN FRENCH FROM REVUE DE DROIT PENAL ET DE CRIMINOLOGIE, V 54, N 2-3 (NOVEMBER-DECEMBER 1973), MINISTRY OF JUSTICE OF BELGIUM, BRUSSELS

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 TECHNIQUES 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 FICTITIOUS 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 ARE 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. FOR THE ORIGINAL OF THIS DOCUMENT IN FRENCH, SEE NCJ-28807.