Penalties of 320 Hours Community Service for Tax and Subsidy Fraud

News report | 22-01-2026 | 09:37

Turnover Tax Fraud

The criminal investigation by the FIOD, led by the OM, started following a tax audit. It appeared that a company of the suspects sold various machines, but the sales of these machines were not declared in the companys turnover tax returns. This resulted in the company paying too little turnover tax in the period from 2018 to 2019. The tax disadvantage amounts to more than 398,000 euros in total. The OM therefore imposes a community service sentence of 160 hours on both suspects. 

Subsidy Fraud

Further investigation also revealed that another company of the suspects was involved in subsidy fraud. This company applied to the UWV for a temporary subsidy scheme to help employers make workplaces accessible for employees with disabilities. Following this subsidy application, the UWV paid out a total amount of 675,000 euros. However, the subsidy money paid out was not fully spent on the intended subsidy purpose by the company during the period 2021 to 2022. For this offense as well, the OM imposes a community service sentence of 160 hours on both suspects.

Settlement

In December 2024, the suspects were arrested and interrogated by the FIOD. Both companies are now bankrupt. Due to the passage of time, the OM chooses an efficient and appropriate settlement in the form of penalties in this case. Going through the court would take longer, partly due to limited hearing capacity, before the case could be concluded. Moreover, the suspects acknowledge their responsibility for the two offenses and accept criminal liability. This has also led the OM not to bring the case to court but to impose penalties and thus establish guilt for the prohibited acts. A penalty leads to a criminal record. This press release helps the OM to provide transparency about how this case was settled.