Three arrested in tax fraud case involving two nonprofit foundations, €200,000 loss
Dutch investigators arrested three people and searched multiple properties last week in a tax fraud investigation involving two Dutch nonprofit foundations, the financial crimes investigative service, FIOD, reported.
The financial damage to the state is estimated at a minimum of 200,000 euros. The investigation is being led by the Functioneel Parket.
FIOD, part of the Belastingdienst, detained two men, ages 41 and 43, and a 24-year-old woman in Emmen and brought them to police stations for questioning. The investigation focuses on value-added tax (VAT) fraud and document falsification.
Three residences and a business property in Emmen were searched, and both physical and digital records were seized. During the search of the 41-year-old man’s home, authorities also confiscated a prohibited firearm and ammunition.
The criminal investigation began after a tip from the Belastingdienst. FIOD’s examination indicates that the 41-year-old man likely played a central role in a complex fraud scheme involving the two foundations. He, his 24-year-old partner, and the 43-year-old man are suspected of tax fraud and document falsification.
According to investigators, the foundation managed by the 43-year-old man allegedly transferred some of its received funds to other entities, including the foundation overseen by the 24-year-old woman.
These transfers appear to have been based on invoices for work and salary payments that never occurred. The foundation controlled by the woman received part of these funds for work that, according to the investigation team, was not performed. Portions of the business administration were also reportedly falsified to support these transactions.
Authorities also suspect that the foundation run by the 43-year-old man submitted false VAT returns by claiming excessive input tax. Additionally, in relation to a security-sector contract bid, the same foundation allegedly submitted a forged document to a municipality.
