Czech Police Accuse Six People of Tobacco Tax Evasion

Source from:  Prague Daily  11/14/2013

The Czech police and customs officers uncovered an international network of illegal production and distribution of cut tobacco, causing tax evasion of 70 million crowns, and they detained 14 people of whom six were accused these days, the police said Tuesday.

The extensive case affects other European countries - the neighbouring Germany, Poland and Slovakia as as well as the Netherlands.

Its extent is unique in the Czech Republic, police and the General Customs Directorate's representatives said.

The gang was legally importing tobacco leaves that they processed and distributed in the Czech Republic and abroad. However, they did not pay excise tax and declared tobacco as other goods when exporting it.

Some 250 policemen and customs officers worked on the case in the Czech Republic and further tens abroad.

Policemen carried out some 30 searches of homes, storage facilities and offices in five regions. They seized machines, a large amount of tobacco, documents, some ten million crowns in cash, valuables and other items.

Six men aged 40 to 50 years from Prague and another four regions were accused of tax and fees evasion and they were remanded in custody. Police consider two of them the masterminds behind the case.

The accused face up to ten years in prison if convicted.

The cut tobacco was manufactured in a company complex in east Bohemia. Another business company had its warehouse in the facility, which was connected with the illegal production, detective Ondrej Stary said.

Other storage facilities were revealed abroad.

Police have not yet found the proceeds from the criminal activities, but they seized the property of the accused individuals and companies, such as money in their bank accounts, cars, real estate and other items worth dozen million of crowns.

Police do not rule out that other people might be accused in the case. Enditem