Property Is Not To Be Concealed So Easily Anymore

Novinky

On 6 September, 2016, the Parliament of the Czech Republic approved a bill proposing changes in several laws relating to demonstration of property origin.

The amendment aims to simplify the process of uncovering undeclared and concealed income of income tax payers and the respective taxation thereof. If the tax administrator notices any discrepancies between the income as stated in the income tax return and the increase in the property by means of consumption or other expenses incurred, the taxpayer will be demanded to provide clarification whether the increase in property in question was financed from either taxed or tax exempt sources. Should they fail to do so, the tax administrator will determine the tax according to the aids (information and materials) at their disposal and a penalty will also have to be paid. The threshold of the discrepancy has been set to CZK 5M.

The amendment is yet to be approved by the President, published in the Collection of Laws of the Czech Republic and expected to become effective on 1 November, 2016.