Hungary’s tax authority APEH initiated proceedings to suspend the tax numbers of 630 newly-formed companies during the first six months of 2009, reports napi.hu.
In most of the cases, the sanction was due to bogus data related to the new company’s official headquarters – for example, an empty plot or fictitious address – or its managers, some of whom were found to be homeless individuals.
APEH carried out checks at 26.8% of the 23,500 new companies.
The tax authority said that the primary motivation for the use of false data is the trafficking of fictitious invoices, which can be sold to other firms who want to reduce their own tax liabilities.