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Two staffing agencies operating in the Dutch construction industry are suspected of having committed fraud amounting to €1 million, according to the country’s Fiscal Intelligence and Investigation Service (FIOD).
The FIOD believes the staffing firms evaded paying taxes. A search was carried out on the companies’ premises on Wednesdayand a 41-year old man was arrested. The government agency also confirmed that several records were seized as evidence and witnesses were interviewed.
The Dutch government last year introduced a package of measures, initiated by the Social Affairs and Employment Ministry, to tackle rogue agencies. Hundreds of staffing firms were inspected last year with the Ministry reporting a number of raids.
Tougher rules have also been introduced to eliminate rogue traders with staffing firms now having to be registered in a trade register to increase transparency in the staffing sector.