Language Switcher Fallback

The roundabout way

When the owner of an agricultural farm came up with the idea of adding a new cow house to his enterprise, the first thing he did was submit an application for a subsidy with the appropriate authorities. After the necessary paperwork, a subsidy of almost 100,000 euro was granted. In addition to his agricultural enterprise, the man was also the owner of a building and contracting firm. In the year the new stables were built, the turnover of the building and contracting firm increased considerably, with almost 100,000 euro. A coincidence? Probably not. When an accountancy firm checked the books it came to light that the farmer had had his cow house put up by his own building firm. To cover his tracks he had used a newly created private limited company for this. In other words, in a roundabout way, the man had made sure he himself got the building contract, thus not only laying his hands on the subsidy, but also on any profits. This, of course, was in contravention of the terms of the subsidy. When the accountants pointed this out to the man, he indicated he had no intention of informing the authorities. Upon which the accountancy firm immediately ended the relation with the man and, in accordance with the obligation to report, informed FIU-the Netherlands of the unusual transaction. The transactions were declared suspicious, and the data were transferred to the appropriate investigative authorities.