Rome. Authorities in Italy have uncovered a tax credit fraud worth about €560 million, around ₹5,000 crore, linked to the government’s energy-efficient home renovation incentive programme known as the Superbonus scheme. Investigators found that the alleged network used more than 60 shell or inactive companies to generate fake tax credits without carrying out actual construction or renovation work.
Shell Companies Used To Create Fake Credits
Investigators said the network created the appearance of large redevelopment and renovation projects on paper, while no physical work had taken place at the reported sites. More than 60 shell or inactive companies were allegedly used to prepare documentation showing non-existent construction activity.
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The fabricated records were then used to generate tax credits under the Superbonus scheme. Authorities found that these credits were later transferred or sold within financial markets, effectively converting government-backed subsidies into tradable financial instruments.
The investigation also found alleged manipulation of real estate databases, property records and administrative information to prepare fake invoices and construction certificates.
Residential Complexes Misused Without Owners’ Knowledge
One of the key findings concerns 22 residential condominium complexes that were allegedly used in the fraud. Multi-million-euro renovation projects were falsely declared for these properties, although the actual owners were reportedly unaware that their buildings had been used in the scheme.
Authorities said property data and ownership records were exploited without consent to create fake project documentation. These records helped the network present fraudulent renovation claims as legitimate projects.
So far, 12 individuals have been identified as suspects in the case. They face allegations including large-scale fraud and money laundering, with officials suspecting that intermediaries were used to conceal the origin and movement of the fraudulent credits.
Superbonus Scheme Under Scrutiny
The Superbonus scheme was introduced in 2020 during the COVID-19 pandemic to support economic recovery and boost the construction sector through tax incentives of up to 110 per cent for energy-efficient home improvements.
While the programme initially supported construction activity, investigators found that it later became vulnerable to misuse through fake companies, falsified documents and weak verification mechanisms.
The investigation remains ongoing, and authorities expect further developments. The case is likely to intensify scrutiny of verification systems, eligibility checks and monitoring mechanisms for government-backed incentive programmes.
