The country’s tax bureau, the Financial Administration, has issued a warning to tax payers to not respond to a fake text message making the rouds asking them to pay off arrears and providing a bank account number. Neither the number nor the information is genuine, the bureau’s spokeswoman confirmed. The Financial Administration has filed charges with the police.
Cobra, a special team established to fight tax dodging, has prevented tax evasion to the tune of more than two billion crowns in the first half of 2016, the spokesman of the National Centre against Organised Crime, Jaroslav Ibehej, announced on Wednesday. Nearly 50 percent of that amount was secured by regional teams. The anti-tax evasion squad Cobra was set up in June of 2014. According to the police, the team has prevented tax evasion of up to 6.2 billion crowns since its establishment.
Finance Minister Andrej Babiš has ruled out delaying the introduction of new electronic cash registers connected to a tax authority database, iHned.cz reported. The ANO leader had been considering a call to postpone rolling out the system from the Chamber of Commerce. However, Mr. Babiš now says the project will go ahead as planned, with the first phase – involving hotels and restaurants – going live on December 1. Trial operation will start a month earlier. Opponents say the electronic cash register system, which makes it compulsory for businesses to supply information on sales online in real time, will overly complicate the lives of restauranteurs and retailers.
Czech businessman František Savov is to be extradited from Great Britain to the Czech Republic, the Czech News Agency reported on Monday citing spokeswoman Štěpánka Zenklová of the Metropolitan Public Prosecutor's Office in Prague. She spoke after a court in London rejected his appeal over an earlier ruling loast year. Mr Savov, best-known as the owner of Mlada fronta publishers, is wanted on the suspicion of tax evasion and money laundering going into the hundreds of millions of crowns. The 44-year-old businessman has denied any wrongdoing.
The Agriculture Ministry is proposing an amendment to the law on electronic tax registers which would exempt farmer’s markets and small entrepreneurs making less than 5,400 crowns a month from the duty to register all sales electronically. Agriculture Minister Marian Jurečka who will present the proposed amendment to the cabinet said the requirement to use electronic cash registers would bring small entrepreneurs such as those selling their goods on farmers markets to bankruptcy. The proposal should be put to the lower house in September. Finance Minister Andrej Babis –who pushed through the law as an instrument in fighting tax evasion – is strictly against exemptions on the grounds that it would reduce its effectiveness. The law is expected to go into effect in December 2016 and the duty to use electronic tax registers will be implemented in several stages for different categories of entrepreneurs.
The government on Thursday agreed to increase tax credits for parents with two or more children. Next year, parents will be able to deduct more from their tax for second and third children. At present, parents get an annual tax credit of 13.400 crowns for the first child, 17,000 crowns for a second child, and 20,600 crowns for every subsequent child. In 2017, parents will be able to deduct 2,400 crowns more from their tax returns for a second child and 3.600 crowns more for every child thereafter.
Approval has been given for the construction of a new data centre for the Czech government which will store some of its most sensitive details about citizens and tax payments. The project has a budget of around 280 million crowns with the new centre located on eastern outskirts of Prague. Construction should start in mid 2017. Some of the data stored will include that from electronic cash registers, the flagship project of the Ministry of Finance to counter tax evasion. The new centre was first proposed in 2008.
Czech Finance Minister Andrej Babiš said after a meeting of EU finance ministers in Brussels on Friday that the EC had taken a positive stand to his proposal for clamping down on VAT fraud. Babiš said the EC had promised to present a draft legislation on reverse charge VAT by the end of the year. The Czech finance minister has sought the go ahead from fellow ministers for the Czech Republic to have the widest possible remit to use so-called reverse charge VAT, where the tax is paid by the consumer and not the seller. He believes that greater use of reverse charge could save the EU a large part of the around 170 billion euros lost every year in unpaid VAT.