Netherlands’ Fiscal Information and Investigation Service (FIOD) has been investigating a case of fraud related to the Allowance for Fixed Charges (TVL) – a subsidy for SME entrepreneurs and self-employed people who have lost a lot of turnover due to COVID-19 measures but still have running fixed costs.
The FIOD began its investigation into the fraud after a bank reported an unusual transaction to the Financial Intelligence Unit-Netherlands (FIU). As part of the investigation, the FIOD searched five locations, including both residential and business premises, in Zaanstad and Amsterdam. The authority seized over 340,000 euros (USD 416,754) in cash and a large amount of jewelry.
The suspects are likely to have submitted applications for a TVL subsidy by misusing the identities of companies or third-parties. They also ordered products worth tens of thousands of euros in the name of the companies used. However, the amount was not paid after the products were delivered. Notably, the FIOD has not made any arrests at this time.
Source: FIOD, Netherlands