A former employee’s complaint reportedly triggered a widespread investigation into suspected tax evasion involving a major pizza chain in the country, with Greek authorities examining allegations that cash orders were recorded as “complimentary meals” to conceal sales and avoid value-added tax (VAT) remittances.
According to media reports on Thursday afternoon, hours after the story broke, the former employee approached the financial crimes unit roughly six months ago, claiming that the company, identified as Pizza Fan, was concealing transactions and failing to issue receipts.
The complaint reportedly prompted a wider investigation that led to searches, arrests and scrutiny of a suspected system for manipulating sales records.
The investigation is focusing on alleged VAT evasion estimated at least 25 million euros since 2022. Reports published on Thursday said the suspected mechanism involved specially configured software integrated into the chain’s ordering system.
NEWSLETTER TABLE TALK
Never miss a story.
Subscribe now.
The most important news & topics every week in your inbox.
More than 500K euros recovered
One of the most striking findings was reportedly made during a search of the Pizza Fan owner’s villa in northern Ekali district, one of most upscale neighborhoods in the greater Athens area. Police discovered a concealed space containing cash and valuable jewelry.
Reports on Thursday differed over the amount of cash found, with some putting it at more than 500,000 euros and others reporting approximately one million euros.
The key question: ‘card or cash?’
According to information emerging from the investigation, a seemingly routine question asked during telephone orders may have played a central role in the alleged scheme, namely: “Will you pay by card or cash?”
Under the suspected procedure, when customers opted to pay in cash, the information was transmitted to the relevant outlet through the chain’s central ordering software. The order was then allegedly recorded internally as a complimentary meal, or “treat,” rather than as a regular sale.
This allegedly allowed the business to conceal part of its actual turnover from tax authorities and avoid remitting the corresponding VAT. Investigators are examining how the software operated, who had access to it and how the proceeds were distributed.
Software under scrutiny
Those under investigation reportedly include the chain’s owner, senior company executives, accountants, a software programmer and managers of individual outlets.
Police had announced nine arrests in the initial phase of the operation on Thursday, including the owner and several people suspected of playing key roles in the alleged scheme. The investigation was continuing, with checks extending to at least 20 outlets directly controlled by the owner and potentially involving around 80 franchised outlets.
The authorities are examining the suspected scheme in cooperation with the Independent Authority for Public Revenue (AADE) and the Directorate of Criminal Investigations. The alleged tax evasion, estimated at least 25 million euros in unpaid VAT since 2022, remains under investigation.