Investigation ordered into VAT fraud allegations
(MTI) – The National Investigation Office (NNI) has ordered an investigation into claims made by former tax official Andras Horvath concerning tax and customs authority NAV, the national police headquarters (ORFK) said in a statement.
The Municipal Chief Prosecutor’s Office received Horvath’s report on November 13. Horvath claimed that large-scale VAT fraud had gone unnoticed by the tax authority. The prosecutor had asked the police to supplement the report, and the chief of police transferred the case to a police investigations unit on Nov. 27.
On Monday, the competent authority ordered an investigation against an unidentified suspect who is charged with abuse of office.
Horvath told a press conference in November that over one trillion forints (EUR 3.3bn) a year have been missing from state coffers in unpaid VAT with “the support of government circles and the tax authority”. NAV denied the accusations and pressed charges against Horvath for libel.
The Socialist head of parliament’s national security committee, Zsolt Molnar, initiated a hearing of Horvath, along with several senior state officials. The committee’s governing-party members voted down Molnar’s motion.
Horvath said earlier he had evidence to prove that officials had abused their powers at NAV, and he attached a 200-page document serving to underpin his claims.
The Socialists have joined a signature drive started by the opposition LMP party parliamentary fact-finding committee to examine the allegations against the NAV. The required number of signatures have been collected and decision on setting up the committee is expected at tomorrow’s meeting of the House Rules Committee.
Fidesz earlier said its lawmakers had agreed that tax fraud must not go unpunished, but insisted it was up to the public prosecutor’s office to clarify whether Horvath’s statements were true or not.