The Hungarian National Tax and Customs Administration (NAV) is auctioning off a race car belonging to a Hungarian competitor due to suspected value-added tax (VAT) fraud, signaling a significant escalation in a case that began last fall.
The NAV initiated an investigation in 2025 alleging over 1.2 billion Hungarian forints (approximately $3.2 million USD) in potential budget fraud involving well-known rally drivers and associated businesses. According to the investigation, the suspects allegedly used fictitious invoices to evade VAT payments, often without any underlying economic activity.
The case highlights the increasing scrutiny of financial practices within the Hungarian motorsports industry. The NAV has already seized a substantial amount of assets, and the auction of the race car marks a tangible step in recovering funds. The agency released video footage of the raid, showcasing the scale of the operation.
Several individuals involved in the case have been detained, including prominent and successful rally drivers. The NAV has begun selling the seized assets, and a Skoda Fabia RS/R5 EVO Rally2 recently appeared on the agency’s official auction site.
The vehicle, capable of producing 291 horsepower, had its technical specifications approved by the Hungarian National Autoclub (MNASZ) on July 8, 2022. The inclusion of a vehicle with such a background is likely to attract significant interest, as the story behind the asset is often as compelling as the asset itself.
This development follows a broader crackdown on alleged financial crimes linked to Hungarian auto racing. In November 2025, the NAV reported seizing over 120 million forints in cash, cryptocurrencies, and more than 40 vehicles – including luxury cars like a Porsche 911 Carrera, Porsche Panamera GTS, and Jaguar SS100 Roadster – as part of the investigation. Authorities also discovered marijuana, hashish, a machine pistol, ammunition, and a stolen motorcycle during searches of nearly 100 locations.
Ten suspects were arrested and held in custody, with one individual placed under house arrest, as the prosecutor’s office sought detention due to concerns about flight risk, evidence tampering, and the potential for repeat offenses. The individuals face charges of budget fraud and forgery, and could potentially face up to 25 years in prison if convicted. The NAV initially launched the criminal proceedings against two race car drivers and approximately 50 associates due to a reported 1.2 billion forint tax shortfall.
