Italian financial police have nabbed hundreds of fraudsters in a sweep that uncovered millions of euros in unpaid taxes, a statement said.

In a vast operation begun July 1, police conducted around 1,000 raids along Italy's coasts where hotels, restaurants and other businesses catering for vacationers are suspected of tax evasion.

By mid-August they had identified 44 unregistered businesses and 271 undeclared employees.

The businesses together had avoided some €36 million in taxes, the statement said. Holiday rentals had raked in some €700,000 without paying a penny of tax, it added.

Police caught nearly 800 illegal vendors and seized around two million counterfeit products.

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