Cooperative actions against tax frauds
The Financial Adminsitration of the Czech Republic cooperates on combating the tax frauds with many organizations. Here are two examples of recent joint actions with code names CUPRAL and SAXO.
CUPRAL
A fraud that has been based on importing nickel, zinc and copper from other EU member countries and its expedient reselling in purposely founded chain of companies was revealed thanks to co‑operation with the Police of the Czech Republic, the Police of the Slovak Republic, the Unit for Combating Corruption and Financial Crime, the Customs Administration of the Czech Republic and the Financial Administration of the Czech Republic. The Customs Office for Zlín and Olomouc Region discovered that the commodities are factually never leaving the Czech Republic, but it is trafficked in purposely founded chain of companies operating fictitious exports. 16 natural persons and 3 legal persons were accused on the initiative of the Financial Analytic Unit of the Ministry of Finance. All of them were charged for major crime of tax evasion.
SAXO
Operative procedures of the Police of the Czech Republic helped to discover suspicious trading of metallurgical materials (steel bars and sheets) being resold in a chain of circa 10 companies (including a so-called “missing trader”) and ending in the Czech Republic with output prices lower than the input prices. The group evaded the value added tax and illegally claimed excessive deductions through at least 5 chains of sales that have been modified every now and then. Criminal proceedings are conducted against 10 perpetrators.
