Law concerning evidence of income’s origin

There was announced a new law No. 321/2016, which is coming into effect 01.12.2016.

The law is introducing new authorities to tax offices. They are allowed to request evidence concerning the origin of income and can demand additional taxes.

Tax offices are allowed to use these new authorities, if reasonable suspicions are existent, that there are differences between the registered income and actual expenses, respectively the property growth, that are higher than 5 million Czech crowns.

Tax offices may – aside from additional taxes – decide on a penalty up to 100%, if cooperation during action was refused. Moreover the penalty for the relevant element of offence is tightened in the penal code.