On 1 July 2016 a new amendment of the Criminal Procedural Code and Criminal Act (the “Amendment”) came into force. The Amendment introduces criminal liability for the avoidance of taxes, fees and similar mandatory payments (“Tax Evasion”), in cases where the Tax Evasion was premeditated.
The premeditation of a criminal offence is conduct which constitutes the deliberate creation of conditions for committing a crime. In order to attract criminal liability for a premeditated crime, it is necessary to premeditate a particularly serious crime (intentional criminal offences for which criminal law sets out a prison sentence with an upper penalty limit of at least 10 years). Further, it must be expressly stated in the Criminal Act that the premeditation of a certain criminal offence is punishable. As a result of the Amendment, the premeditation of Tax Evasion is now listed as punishable provided that the damages amount to a minimum of CZK 5,000,000 (EUR 185,000).
The Amendment has further extended the scope of Tax Evasion by making it possible to initiate criminal proceedings where an offender premeditates, attempts or commits Tax Evasion in connection with an organized group operating in several states.