Tuesday, 9 July 2019

Think tank: Czech Republic losing 57 bln in tax havens annually

6 April 2016

Prague, April 5 (CTK) - The Czech Republic may be losing up to 57 billon crowns in the taxes disappearing in tax havens annually, the analytical centre Glopolis has said online.

Due to the transfer of profits to tax havens, the EU as a whole may be losing an estimated 190 billion euros annually, Glopolis said.

Along with European partners, Glopolis tries to make politicians change the legislation to the effect that companies would have to reveal their profit for each of the countries in which they are economically active.

"We want the government and lawmakers to support the compulsory publication of basic economic data such as the turnover, profit, the number of the staff and paid tax for each of the countries in which they work," Glopolis deputy director Ondrej Kopecny said.

The latest Panama Papers scandal has revealed that scores of personalities from the politics and business hide their profits in tax havens.

The tens of thousands of persons and companies, whom the firm Mossack Fonseca helped establish offshore firms, include 283 Czechs, such as tennis star Tomas Berdych, the Czech centre of investigative journalism said on Monday.

The Czech tax administration and the Finance Ministry's Financial Analytical Unit (FAU) must react to the affair known as Panama Papers, Prime Minister Bohuslav Sobotka (Social Democrats, CSSD) has written on Twitter, adding that pressure for eliminating tax paradises must be exerted on international and European levels.

The establishment of offshore companies and politicians' presence in their boards in itself may not be illegal. This depends on the legislation of a given country.

However, politicians may have violated the law if they falsely informed the public about their property.

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