An organized criminal group has been implicated in a scheme involving fictitious VAT transactions that caused the Latvian government substantial financial losses totaling €255,584. Over a period of two years, members of the group registered companies under their names, opened bank accounts, and engaged in reporting non-existent transactions in their companies’ declarations. This fraudulent activity allowed two companies to unlawfully benefit from VAT deductions associated with fictitious transactions involving ten other companies under the group's control.

The group's activities included the creation of false documentation for these transactions, the execution of transfers for unreal business deals, and the submission of false declarations to the State Revenue Service. Their actions not only enabled them to evade tax payments but also involved concealing taxable objects, leading to a total tax loss for the state of €435,316, which included unpaid corporate income taxes. Furthermore, the organized group has been accused of laundering criminally obtained funds on a significant scale, indicating a broader pattern of illegal activities and exploitation of loopholes in the tax system.

This case highlights ongoing issues with tax evasion and financial crime in Latvia, prompting authorities to take stronger measures against organized crime. The implications of this case extend beyond the immediate financial losses, shedding light on vulnerabilities in the regulatory framework governing tax compliance and the need for enhanced scrutiny of corporate activities to prevent similar fraudulent schemes in the future.