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Action “RUNWAY” prevented the tax evasion

The Financial Administration and the Customs Administration of the Czech Republic secured 700 000 litres of the FAME bio diesel (fatty acid methyl ester) in the framework of joint action called “RUNWAY”. Based on this fact, it has been prevented the tax evasion on VAT in the amount of CZK 9 million.

The goods should be used as a fuel for engines in the form of clear FAME (100 % Bio) or mixed diesel so-called B30 (30 % bio diesel and the rest of diesel).

Based on checking of this transaction the Financial Administration of the Czech Republic had a suspicion that the legal entity, which was declared as a receiver of FAME may cause a tax evasion on VAT. Therefore the Financial Administration of the Czech Republic has issued a security order. On the basis of this security order the Financial Administration of the Czech Republic carried out securing of goods and after that seizure of goods.

The Financial Administration of the Czech Republic co-operated with the Tax Administration of the Republic of Austria on checking of the owner of the goods. The goods were stored in the premises of former military airport in Líně near Plzeň.

With respect to the nature of the goods (quickly perishable biological material), it is likely that the tax administrator will proceed to sale outside the auction, which means that goods will be offered for sale to persons who are authorized to trade in such goods. It is expected that the direct selling will reimburse the majority of tax arrears.