Financial Administration

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Relentless fight against tax evasions of VAT

Financial Administration of the Czech Republic has not diminished its efforts to eliminate tax evasions of VAT. Since the beginning of this year it has been issued dozens of security orders, which managed to prevent non-payment of taxes amounting to nearly CZK 250 million.

Employees of the financial administration has focused on the taxpayers during controlling-seizure actions, where there is a real risk of non-payment of future tax obligations or those for which there are reasonable concerns of conscious involvement in tax evasions of VAT. During these control actions the financial administration cooperates with the Customs Administration of the Czech Republic and with the Financial-Analytic Department of the Ministry of Finance of the Czech Republic.

An effective tool in fight against tax evasions is the security order, which enable to secure unpaid or undeclared tax obligations. The security orders are used in cases, where there are reasonable concerns about future enforcement of the payment of taxes. Damages, which could reach several hundred million in CZK in some cases are due to these early interventions minimized. These operations have had a positive benefit to the state budget.