Police in the Hradec Králové Region have charged four people and seven companies with tax evasion, saying they “optimized the tax burden” of five employment agencies by manipulating data. The accused face up to ten years in prison.
Investigators have charged four people aged 38, 42, 49, and 50 and seven companies with tax, fee, and similar compulsory payment evasion. Police spokeswoman Iva Kormošová reported on the case on Wednesday.
“All people are accused of jointly optimizing the tax burden on five companies that operated in the market as employment agencies. They included false documents in their accounting records, which they subsequently included in their tax returns, ” the spokeswoman said.
The firms have been assessed a lower tax based on the amended tax returns from 2018 to 2020. According to investigators, they caused nearly 44 million crowns worth of damage to the Czech Republic. At the same time, police officers seized cash, property, and money in various accounts totaling 43 million crowns from the accused during the investigation.
“The audacity against the state, in this case, is that one of the accused companies, which calculated taxes for the other accused companies, issued invoices for this service and charged 30 percent of the ‘saved’ value-added tax as its share,” Kormošová added.