Fictitious firms / fictitious transactions

Fictitious transactions are business transactions only existing on paper which have never really been concluded. Examples of frauds in subvention payments, sales tax, input taxes are not rare. In this context fictitious firms, that means firms only existing on paper or in mail boxes (so called dummy firms) are often used.

So frequently millions are blaming back and forth. The most known examples are the case of the building speculator Schneider and Flowtex. Banks granted Flowtex credits up to several million, only on the base of surety in form of machines, which did not really exist or manufacturing plants consisting in empty buildings.

But not only big crooks are concerned; often notables use fictitious firms to save taxes.