17th October 2014

Financial Administration is to be Able to Ask for the Origin of Property above 10 Million CZK

According to the proposal of Minister of Finance Andrej Babiš the financial administration should be able to examine and ask for the origin of property that is more than 10 million CZK and tax it should it prove necessary. This measure should help the taxation of incomes and of property. If the untaxed income would be more than 2 million CZK the Administration would use special measures and also additional penalty of 100 % will apply that could be reduced to 50 % if the subject was cooperative. Under 2 million CZ the 20 % penalty would apply. The measure will not extend current period for additional taxation which is currently 3 years. It should also help in revealing the incomes from criminal behavior. Similar measures are already applied for example in Bulgaria, Denmark, Hungary, Germany, Spain or Slovakia. These measures are to be adopted and enforced from the beginning of 2016.

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Members of the American Chamber of Commerce in the Czech Republic