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Tax Cobra prevented fuel tax evasion in value of CZK hundreds of millions

The Tax Cobra stroke again. A potential fuel tax evasion was nipped in the bud. Based on analysis of information, rapid exchange of information among members of the Tax Cobra (joint team of Unit for Combating Corruption and Financial Crimes (ÚOKFK), the General Financial Directorate and the General Directorate of Customs) and the subsequent intervention at the fuel traders, tax evasion in the amount of approximately CZK 650 million was prevented.

Specialists from tax and customs administration, with assistance of the ÚOKFK, received information on possible abuse of the system for receiving and distribution of fuels and on impending issue of large tax arrears on value added tax and consumption tax. The suspected tax subject operated in import and sale of fuels on Czech market.

Officers of the ÚOKFK gathered some evidence, which handed over to employees of the Financial Administration of the Czech Republic. Employees of the Financial Administration together with the employees of the Customs Administration of the Czech Republic launched an action called “OTHELLO” and immediately tightened the tax subject’s conditions for operating of tax warehouse and fulfilment of their tax obligations. It resulted in a series of administrative decisions including withdrawal of permission for operation of the tax warehouse, securing orders and repeated seizures of cash and stored fuel. Action “OTHELLO” culminated on Wednesday, 13th August 2014, by seizing of more than CZK 650 million on bank accounts and 700 thousand litres of fuel, which will be used to cover the tax arrears.