Tax evasion as a criminal offence

Starting on 1 July 2016, committing tax evasion will again be a criminal offence. The criminality of tax evasion was effective up to 2009, and now after several years, the amendment to the Criminal Code will make tax evasion a criminal offence once again.

A criminal offence is understood as an act involving the intentional creation of conditions for committing an especially serious crime, pursuant to Section 20(1) of the Criminal Code, e.g. issuing false invoices.

Only especially serious crimes will be punishable. Therefore, tax evasion is considered as committing an act leading to tax evasion that exceeds CZK 5 million or tax evasion exceeding CZK 500,000 committed in connection with an organised group operating in more than one country.

Introducing the criminality of the criminal act of tax evasion was justified by the government in particular in response to the need to sanction the black market for alcohol, tobacco, and commodities subject to excise tax where the fact that the Criminal Code did not permit criminal sanctions against acts leading to tax evasion was seen as critical. However, this change has been viewed by the professional public as very controversial, especially considering that it is very difficult with this type of criminal act to draw the line between legal reductions in the tax base, and in turn tax duties, and illicit tax evasion punishable under law.