Michaela Merz

Czech Republic – How to fight against tax evasion

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About 100 selected tax officers from various parts of the Czech Republic are coming these days to “help Prague” and to support inspections of taxpayers falling within the scope of Prague Tax Offices. Those authorities have been known for struggling with a lack of time and staff for carry out limited or full tax inspections on a regular basis. As one would expect, this inspired plenty of businesses who on purpose registered their seat in Prague, which further worsened the issue.

During the three months of this extraordinary event the focus of the tax officers “migrating” to Prague will be on scrutinising high input VAT deductions as well as inspecting businesses with a virtual or mass address. In the first phase, it is planned to inspect 800 and then further 500 taxpayers.

Czech businesses, including all foreign entities not established in the Czech Republic but VAT registered there (as the latter fall by law under the Central Tax Office Prague 1) should thus be prepared to face more frequent queries from the Prague Tax Offices, as announced by the Czech finance administration – see

https://www.youtube.com/watch?v=Ycq6BhPVnA0

For more information please contact:
Petra Safkova, PwC Geneva
petra.safkova@ch.pwc.com.

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