“A new report from the Czech Supreme Audit Office has revealed failings by Czech tax authorities to improve value-added tax (VAT) collections since 2008. The five-year shortfall seen in VAT receipts relative to budgetary targets expanded further in 2012 despite a hike to the lower rate last year.
From January 1, 2012, the Czech lower rate of VAT was hiked from 10 percent to 14 percent aimed at boosting VAT collections by CZK21.3bn. However, the Supreme Audit Office’s report identifies that there was a VAT shortfall of CZK21.9bn last year, the most significant since the start of the financial crisis. An unexpected fall in consumer consumption was cited as contributing to the under-performance, but the report also identified indications of higher levels of tax evasion and fraud.”
They need to take a leaf from HMRC’s book and look more closely at their cricket clubs!
Tax Barrister, Accountant