Hungarian bike tour association fined for tax evasion and fraud

Hungarian tax authorities uncovered a bike‑repair and parts business that operated as a façade for a bicycle touring association. The association organised foreign bike tours, collected a participation fee of 185,000 forints per person, but often failed to provide the promised routes, guides, accommodation or meals.

An audit by the National Tax and Customs Administration (NAV) found that the organisation did not file VAT or personal‑income tax returns and concealed roughly 22 million forints of revenue, leading to an assessed VAT liability of about 6 million forints. The association’s president refused to cooperate with investigators and did not hand over records. Payments from participants were sent directly to the president’s personal account, and the bookkeeping firm reported unpaid invoices and missing documents. NAV has ordered a tax audit of the president and is pursuing the unpaid taxes and contributions.