Europol Says Hundreds Of Italian Restaurants In Germany Tricked Cash Registers To Avoid Taxes

Illustration of Europol operational room. (Twitter/@Europol)

JAKARTA - More than 300 Italian restaurants in Germany have been caught using a manipulated cash register, which allows them to avoid paying taxes.

Restaurant owners are accused of buying special cash registers that help hide their true income from the authorities.

According to a statement on its website, the European Union Law Enforcement Cooperation Agency, Europol, raided 93 properties in Germany and confiscated about 275,000 euros, or about 317,326 US dollars.

Together with Europol, the German Tax Office for Criminal Investigation and Issues, and the Italian Financial Corps, dismantle organized crime groups involved in tax fraud through cash register manipulation.

From the disclosure of this practice, as many as twenty-three people were threatened with prosecution.

"The joint operation, supported by Europol, targets criminal networks selling software solutions for cash registers, which allow businesses to manipulate their daily sales records", Europol said, citing The National News, October 6.

Europol said cash-intensive businesses such as restaurants could use these customized cash registers to manipulate their income and reduce output VAT and corporate tax liability.

"Customers, especially Italians who have established businesses in Germany, get cash registers and software from Italian suppliers, who have developed these products", explains Europol.

"This information technology solution allows businesses to securely access cash register databases, decide how much of their daily income is hidden, how much to report to tax authorities", Europol said.

The results of an investigation conducted by Europol found that more than 300 Italian restaurant owners in Germany had purchased the system.

"The price of the machine is much higher than a regular cash register which cannot manipulate financial records", concluded Europol.