More than 20 people have been arrested in connection with an alleged €25 million VAT evasion scheme involving the pizza chain Pizza Fan.
The number of arrests rose by at least 11 following police searches at branches of the chain across Greece, which has an estimated 100 locations.
According to the investigation, company managers used specialised software to record one in every four pizzas sold as “complimentary”, but only when customers paid in cash.
The software allegedly allowed managers to conceal 25% of cash sales, avoiding payment of the corresponding value-added tax (VAT).
The practice had reportedly been taking place since at least 2022.
Pizza Fan did not operate dine-in restaurants, instead taking orders for home delivery.
Its central system and call centre were based in Chalandri, handling orders for all branches across Greece.
The owner allegedly required franchise managers to apply the 25% rule, threatening to revoke their right to use the brand name if they refused.
He also reportedly received a share of the undeclared revenue from 91 branches.
The company was registered in Cyprus rather than Greece, while its owner was officially listed as an ordinary salaried employee.
Employees at the branches were also allegedly registered as working fewer hours than they actually did, reducing the employer’s social security contributions.
Nine alleged core members of the suspected criminal organisation, including the owner*, a senior executive, store managers and accountants, have been arrested and are expected to appear before a prosecutor today.
The managers of the remaining 91 branches are also expected to be implicated as alleged members of the criminal organisation, as they are suspected of knowing about the “complimentary pizza” scheme.
Authorities reportedly found €1 million in cash and jewellery at the owner’s home.
