Carousel Frauds in the Czech Republic
Journal of Finance and Accounting
Volume 2, Issue 6-2, December 2014, Pages: 1-5
Received: Sep. 12, 2014;
Accepted: Nov. 7, 2014;
Published: Feb. 1, 2015
Views 4697 Downloads 136
Alexej Sato, Department of International Trade, University of Economics, Prague, Czech Republic
Follow on us
Collection of value added tax represents for all EU Member States an important part of the state budget, the share of which is mostly higher than 20%. Growing state expenses and endless economic and financial crisis have resulted in deep dependence on EU Member States revenues from VAT. Organized groups of tax fraudsters abuse the loopholes in current tax legislation to achieve unjust enrichment. This paper describes the practices of tax frauds in VAT collection most frequently used in the Czech Republic, summarizes measures adopted by tax administration and evaluates the effectiveness of their application.
Taxation, VAT Collection, State Budget, Carousel Fraud
To cite this article
Carousel Frauds in the Czech Republic, Journal of Finance and Accounting. Special Issue:Emerging Trends in Finance and Accounting.
Vol. 2, No. 6-2,
2014, pp. 1-5.
European Commission: Council Directive 2006/112/EC of 28th November 2006 on the common system of value added tax
European Commission: MEMO/12/609 of 31st July 2012 VAT: Commission proposes new instrument for speedy response to fraud
Harrison, G., Krelove, R. IMF Working Paper 05/218, VAT Refunds: A Review of Country Experience, 2005
Keen, M., Smith, S.: National Tax Journal, vol. 59, no. 4., VAT Fraud and Evasion: What Do We Know and What Can Be Done? 2006
NKÚ Supreme Audit Office of the Czech Republic, Regulation no. 13_2, 2013
European Commission: Council Directive 2013/43/EU of 22nd July 2013 amending Directive 2006/112/EC on the common system of value added tax, as regards an optional and temporary application of the reverse charge mechanism in relation to supplies of certain goods and services
Czech VAT Act No. 235/2004 Coll.: Adjustment of reverse charge procedure in the provision of construction and assembly work embodied .
The Court - Third Chamber: Teleos plc and others v. Commissioners of Customs & Excise. Judgment of the Court (Third Chamber) of 27th September 2007 case no. C-409/04.
European Commission: Council Directive COM(2012) 428 final, Quick reaction mechanism against VAT fraud.
European Commission: Council Directive COM(2012) 351 final. Communication from the Commission on Concrete Ways to Reinforce the Fight against Tax Frauds.
European Commission: Council Directive COM(2010) 695 final. Green Paper on the Future of VAT Towards a simpler, more robust and efficient VAT system.
European Commission: Official Journal COM(2011) 48 final, Opinion of the European Economic and Social Committee no. 2011/C 318/14 on the Green paper.