Dutch fiscal investigation service seizes 44 cars and luxury items in tax fraud probe

The FIOD, the Dutch Fiscal Information and Investigation Service, has seized 44 vehicles, physical and digital records, mobile phones, computers, cash, bank accounts, a bitcoin, and 20 luxury watches in a probe into fraud involving the Dutch tax on passenger cars and motorcycles (BPM). Authorities estimate that millions of euros in purchase tax were underpaid. Four men were arrested last Tuesday. BPM is the tax levied on imported cars and motorcycles.

The men, aged 20, 32, 35, and 45, from the municipalities of Kampen, Lelystad, and Utrecht, are suspected of using false car valuation reports. Three of them work in the car industry and submitted BPM tax declarations for their businesses.

These reports, which are used to determine the BPM payable, included damages that did not exist. Some of the falsified reports were produced by the company of the 45-year-old Utrecht suspect. The FIOD estimates that dozens, possibly hundreds, of declarations involved inaccurate valuation reports.

The men aged 32 and 35 from Lelystad are additionally suspected of intentionally filing false VAT returns. Authorities estimate that two to three million euros in VAT may have gone unpaid. More arrests could follow.

Authorities are increasingly cracking down on BPM fraud. The FIOD and the Tax Authority are targeting car dealers and appraisers involved in these schemes. “They distort the market and create unfair competition in the automotive industry,” the FIOD said. Fraudsters not only deprive the government of revenue but also face fines, repayment of unpaid taxes, and potential criminal records and prison terms.