Tax Authorities Crack Down on Corporate Fraud: Fake Renovation Schemes Exposed

The audits reveal that the companies concerned have used small suspect companies to issue inflated invoices, without any actual work being carried out. According to precise data from the Risk Analysis and Programming Service - which is part of the Investigations, Data Valuation and Programming Division within the Directorate General of Taxes (DGI) - these companies have used companies created by relatives or partners to produce false invoices, according to well-informed sources at Hespress.

By cross-checking suspicious data, the tax administration’s computer system has detected signs of tax evasion and fraud. This detection has prompted the control teams to expand the scope of on-site controls to dozens of companies, in order to document significant tax deductions based on fictitious expenses. The controllers’ suspicions are strengthening regarding the involvement of companies in the recurrent exploitation of renovation works in order to inflate expenses and avoid their tax obligations, confirm the same sources.

They detail: these companies have regularly used the same service providers for these "works", concluding, at certain periods of the year, contracts with small or medium-sized companies to carry out fictitious maintenance operations.

Relying on information concerning the tax and accounting situation of these units, which deal exclusively with the companies concerned, the tax inspectors intend to move from document control to on-site control, in order to verify the reality of the renovation and maintenance works related to major companies and small service units.