Prague, Sept 2 (CTK) – The Czech financial administration is drafting an amendment to the law under which it will be allowed to disclose the names of the companies that committed tax fraud or do not pay taxes, General Financial Directorate (GFR) general director Martin Janecek told journalists yesterday.
Janecek spoke in connection with the biggest tax evasion case relating to VAT and uncovered on Tuesday.
At present, tax offices must not publish any details on the fraudulent firms.
On Tuesday, the financial administration announced that it had uncovered the biggest case of tax evasion on VAT in the Czech Republic, in which two companies gained 4.5 billion crowns by illegal transactions with precious metals.
The GFR financial directorate filed a criminal complaint over the tax fraud.
“The amendment is to soften the secrecy of the tax administration,” Janecek said.
“Among others, this is demanded by towns and villages that want to gain the information on those who failed to pay the property tax,” Janecek said.
The tax in question is a 100-percent revenue of the municipalities.
In the case of carousel frauds, the goods are repeatedly resold, which increased the VAT. The firm that should pay it, does not do so, while another firm in the chain claims a tax deduction from the state.
“The state then pays without getting anything,” GFR spokeswoman Petra Petlachova said on Tuesday.
The financial administration started checking the companies on the basis of its own investigation.
The checked companies had only very limited financial sources of their own. The means needed for their operation were formed by the excessive VAT deductions.
($1=24.040 crowns)
