Schaffer & Partner: Specialised Financial Authority uncovered tax evasion plot nearing CZK 4.5bn.
Specialised Financial Authority uncovered tax evasion plot nearing CZK 4.5bn.
Specialised Financial Authority uncovered tax evasion plot nearing CZK 4.5bn.
A tax inspection of two firms has been conducted uncovering a sophisticated and complex scheme resulting in VAT evasion nearing CZK 4.5; the rationale behind the deed was based in setting a chain trade in precious metals, mainly gold, platinum and silver, which enabled the partaking parties to make VAT claims over a long period of time. The transactions in question were conducted in the Czech Republic, Germany, Turkey, Saudi Arabia and Slovakia.
The General Director of the General Financial Directorate stated: “Uncovering the plot was not easy as the firms created a highly sophisticated and, mainly, variable trade chain, 120 links of which needed to be inspected; an onerous task consisting of complex proceedings accomplished by the Tax Administrator in less than a year”.
A fraud of such magnitude is the most serious one that has been uncovered so far; achieving this, coupled with adopting appropriate measures, signifies a step forward in tackling the VAT evasion problem having been made.
How to properly terminate the agreement to complete a job and agreement to perform work from 1 October 2015?
The agreement to complete a job and the agreement to perform work are frequently used tools that allow employers to use workforce more freely. The greatest advantage of these agreements is a more flexible legislation relating to their conclusion, course and termination, where the employer is not so strongly bound by the rules of the Labour Code as in the case of employment relationship. In practice, however, there are often situations where employers fail to agree the manner of termination of such agreements.
Therefore, as of 1 October 2015, the Labour Code also regulates the manner of termination of the legal relationship based on these agreements in case no manner of termination has been agreed between the parties. Of course, the employee and employer may still agree to terminate such employment. The employer and employee may also terminate the agreement without giving any reason, subject to the 15-day notice period.
However, a major limitation for employers comes in the case of immediate termination of the agreement, because the immediate termination of the agreement for work performed outside the employment relationship may only be used by the employer in situations for which the employer could terminate the employment relationship with the employee immediately.