Greek police arrest 22 in Pizza Fan VAT fraud investigation

Greek police have arrested 22 people in an investigation into the Pizza Fan restaurant chain, which operates 100 outlets across the country. Nine of those detained are accused of forming the criminal core, including the owner, the company's number two, a programmer, and accountants. Investigators say the chain may have deprived the Greek state of 25 million euros in unpaid taxes since 2022.

Police discovered a secret room built as a double brick wall in the owner's villa in the northern suburbs of Athens. Accessible through a hidden door, the room contained about 1.1 million euros. Officers also seized gold jewelry and luxury cars at the start of the operation.

“The customer pays normally, but in the electronic files his purchase may appear as a "tip", a canceled order, or a transaction of lower value.”

The alleged fraud relied on software created by a programmer that recorded false transaction data. The nine outlets owned by the parent company used the program, and the investigation expanded to franchise locations to determine how many used the same system. Inspections have taken place at 23 outlets so far, 20 in Attica and three in Thessaloniki.

Customers who chose to pay in cash reportedly received a delivery slip instead of a receipt. A special function called "tip-receipt" was embedded in the ordering system, allowing staff to process orders without issuing the required tax document. Police estimate that about 20 percent of receipts were not issued for orders worth up to 40 euros.

Additional arrests included 12 managers of the inspected outlets. Authorities seized about 100,000 euros more during these checks, bringing the total seized amount to approximately 1.2 million euros. The Independent Authority for Public Revenue is cross-referencing digital records with myDATA data to find undeclared sales.

If fraud is confirmed, fines are calculated based on declared turnover per audited year and have no upper limit. Those who manufacture or support the illegal software also face penalties, and business suspension can last up to 24 months depending on the person responsible.