Gürtel ring members face additional tax fraud charges

The Tax Agency has uncovered a serious case of alleged fraud committed by a front company for the Gürtel corruption ring that was awarded a contract to provide services for the pope's visit to Valencia in 2006.

The Gürtel kickbacks-for-contracts ring earned some three million euros from the contract given to the Teconsa construction company, which was awarded by the regional television channel RTVV. But an investigation has revealed the ring also committed corporate and value-added tax fraud valued at 600,000 euros on the profits it earned.

The Tax Agency has sent a report to the judge conducting the Gürtel case so that the court can add charges of alleged tax fraud before the statute of limitations on such crimes runs out.

Teconsa charged RTVV 7.4 million euros, including VAT, to set up television and loudspeakers along the route the pope took through Valencia. According to the books of companies in the Gürtel ring, the actual cost of providing this service was only 3.2 million euros.