Beyond the return: who controls the business?

A tax return can be correct and still tell the authority too little. The filing identifies the taxpayer but it may not reveal who actually controls the business. Investigations into tax fraud and related financial crime often depend on some or all of the following: resolving identities, identifying businesses that reappear under new registrations, and identifying nominee directors or activity spread across several companies. Each record may be internally consistent while concealing the operator behind it. Operation Admiral shows the limits of a national administrative view. In April 2021, Portugal’s tax authority was investigating a company selling phones and other electronics on suspicion of VAT fraud. After the European Public Prosecutor’s Office (EPPO) began operations that June, the Portuguese authorities referred the case to it. Although the invoicing and tax declarations appeared…