SPAIN – The Spanish Tax Agency has launched a large national operation against tax fraud in the furniture manufacture and commerce sector.

The operation, called ‘Iroko’, supposes the beginning of inspection actions on a total of 119 companies and 38 physical persons, partners and administrators of the companies investigated, with the visit and inspection of 112 premises located in the fifteen Autonomous Communities of Spain’s territory.

The operation deployed on March 14th by 520 Agency inspectors affected premises of both furniture manufacturers, as well as wholesalers and retailers of the sector located in: Andalusia (34), Aragón (6), Asturias (3), Baleares (1), Canarias (6), Cantabria (1), Castilla-La Mancha ( 1), Castilla y León (5), Cataluña (20), Extremadura (2), Galicia (5), La Rioja (1), Madrid (6), Murcia (5) and Comunidad Valenciana (16).

The operation was carried out by the Tax Inspection Office and its Computer Audit Units (UAI) as the premises of the companies under investigation were opening their doors, in order to directly access the documentation and accounting or auxiliary information, including the information processing computer systems.

The experience of previous operations indicates that visits from the tax authorities to the premises or homes where the economic activity is carried out or where the administration of the business is carried out allows a more effective fight against the submerged economy. Being an administrative action, the entry and registration proceedings do not involve arrests.