French Authorities Identify 170 Buyers in €12.8M Luxury Car Tax Fraud Scheme via Andorra

French authorities have identified 170 buyers involved in a €12.756 million tax fraud scheme centered on luxury car purchases through Andorra between 2024 and 2025, with about 20 linked to Toulouse residents.

The operation, described by the Toulouse Court of Appeal's prosecutor's office as one of the region's major recent fiscal investigations, exploited Andorran companies via "fake rental" contracts. Buyers registered high-end vehicles in Andorra to pay only 4.5% IGI instead of France's 20% VAT, while dodging ecological penalties on high-emission, large-engine models. The scheme involved a Toulouse-based entrepreneur as the key organizer and clients across France.

Prosecutor Nicolas Jacquet of the Toulouse Court of Appeal confirmed that all 170 individuals have been reported to French tax authorities for regularization proceedings and fines. He praised the joint efforts of French judicial, tax, and Andorran authorities, stating it demonstrated successful cross-border cooperation in identifying the perpetrators and clients.

Two people connected to the Andorran setup have been imprisoned but are now free: one after serving a plea agreement sentence, the other awaiting further judicial developments. Cases in the Toulouse area have doubled from 82 in 2024 to 159 in 2025, reflecting heightened scrutiny.

No trial date has been scheduled as the investigation continues. French media, including Ici.fr, first reported the details, noting the fraud's precise value at €12.756 million in lost revenue.