RON 54m tax evasion at ‘Dragonul Rosu’
The DIICOT prosecutors and judicial police officers have carried out 64 house searches in Bucharest, Ilfov and Braila counties, in an operation aimed at the dissolution of a group led by a Romanian and two Chinese, specialized in tax evasion and money laundering by selling clothing and footwear in shopping complexes in the capital, including at the ‘Dragonul Rosu (Red Dragon).
According to DIICOT, there is reasonable suspicion in the file that the three suspects, a Romanian national and two Chinese citizens, had set up an organized criminal group, joined by 15 suspects, Romanian, Turkish and Chinese citizens, in view of achieving a comprehensive mechanism aimed at avoiding VAT and income tax payment.
The damage caused to the state budget so far amounts to RON 54,388,237.8. During the searches a total of 10 trains containing items of clothing and footwear have been identified.
The criminal mechanism was established for the benefit of Chinese traders who work in companies having offices in shopping complexes across Bucharest and Ilfov County.
Goods originating in China consist mainly of clothing and footwear imported from Turkey, operated by the two Chinese citizens. It was found that the network systematically under evaluated the goods at the customs, declaring approx. 40-45% of the actual value, an amount for which the traders paid customs duties and VAT. The remaining amounts of money, up to the actual value of the goods, were expatriated in cash, usually to Turkey through Turkish citizens.