A group of eight Italian businessmen is currently under investigation for their alleged involvement in a sophisticated tax fraud scheme estimated at nine million euros, linked to business dealings with clients in Cuba, as reported by the newspaper Corriere Torino.
The operation, dubbed "Cuba Libre" and orchestrated by the Guardia di Finanza in Turin, uncovered a network of seven companies, including entities registered in England and Panama, which were used to simulate international transactions and hide significant income generated in Italy.
The investigation began following tax audits of two Turin entrepreneurs, who were operating through fictitious English law companies that issued invoices for non-existent commercial transactions. Their aim was to avoid paying taxes in Italy by manipulating the prices of technological products allegedly exported to Cuba.
The scheme involved selling computer products from a Turin-based company to Cuban clients, utilizing shell companies in England and Panama as intermediaries. Invoices showed a lower price than the actual value, while the remaining payment was secretly funneled into private accounts of the Italian businessmen. In reality, the goods never passed through these countries but were directly shipped from Turin to Havana, generating an illicit profit of approximately six million euros.
During the investigation, authorities discovered a "treasure" of 1.5 million euros deposited abroad and conducted raids, on-site inspections, and analyses of computers and suspicious transactions, which enabled them to piece together the fraudulent scheme.
The two primary suspects, both residents of Turin, have already paid 1.7 million euros to the Italian tax authorities to partially settle their accounts. Additionally, the investigation revealed an extortion case, where a man who had lent a substantial amount of money to the executives involved later threatened to report the fraud to the prosecution if his financial demands were not met.
This incident adds to another recent case where the Caribbean island was either a destination or an indirect player in fraud schemes. Last March, a businessman from Hialeah, Florida, attempted to flee to Cuba after being accused of defrauding Medicaid of more than 41 million dollars. He was apprehended while trying to board a flight to Varadero, in an effort to evade U.S. justice.
Key Questions About the Italian Tax Fraud Scheme
What was the main strategy used in the tax fraud scheme?
The scheme involved selling computer products at a lower declared price using shell companies, with the remaining payment secretly deposited into private accounts, avoiding taxes in Italy.
How did the authorities uncover the fraud?
Authorities discovered the fraud through tax audits, raids, and analyses of transactions, which revealed the use of shell companies and illicit profits hidden abroad.
What additional crime was uncovered during the investigation?
An extortion case was uncovered, where an individual who lent money to the executives threatened to expose the fraud unless his demands were met.