Economic & White-Collar Crime
Defense in Czech Republic
Economic crime investigations are complex and document-heavy. Early, experienced legal representation can make all the difference.
Key principle: Economic crime investigations often last years. The sooner you engage a defense lawyer, the better your position when charges are formally filed — or potentially prevented altogether.
Tax Fraud & Tax Evasion (Zkrácení daně, poplatku a podobné povinné platby)
§ 240 Criminal Code
Intentionally reducing or evading taxes or other mandatory payments — through false declarations, concealing income, or falsifying documents. One of the most frequently prosecuted economic crimes in Czech Republic. The threshold for criminal liability is CZK 50,000.
Possible defense angles
- →Challenge the intent — tax optimization is not criminal
- →Dispute the tax calculation methodology
- →Argue reliance on professional advice (accountant, tax advisor)
- →Voluntary disclosure and full repayment can significantly reduce penalty
Money Laundering (Legalizace výnosů z trestné činnosti)
§ 216–217 Criminal Code
Concealing the illicit origin of assets derived from criminal activity, or handling such assets. Czech law applies broadly — even receiving money of unknown origin can constitute an offense. Predicate offense must be proven.
Possible defense angles
- →Challenge knowledge of the illicit origin of funds
- →Demonstrate legitimate source of assets
- →Challenge the predicate offense
- →Argue the defendant was a victim (mule) rather than principal
Corruption & Bribery (Korupce — přijímání úplatku, podplácení)
§ 331–333 Criminal Code
Offering, giving, requesting, or accepting a bribe in connection with an official's duties. Czech law criminalizes both sides of the transaction. Bribery of foreign officials and private sector corruption are also covered.
Possible defense angles
- →Challenge whether the payment was a bribe or legitimate fee
- →Argue the official acted within their lawful discretion
- →Entrapment defense (provokace policie)
- →Challenge evidence gathering methods (covert surveillance)
Fraud and Subsidy Fraud (Dotační podvod)
§ 212 Criminal Code
Obtaining EU or state subsidies through false or incomplete information, or using subsidies for unauthorized purposes. Aggressively prosecuted, particularly in EU-funded projects.
Possible defense angles
- →Challenge materiality of the misrepresentation
- →Argue good faith reliance on third parties (consultants)
- →Demonstrate actual use of funds for approved purposes
- →Full repayment and cooperation reduce sentence significantly
Bankruptcy Offenses (Trestné činy v insolvenci)
§ 222–227 Criminal Code
Fraudulent conduct in insolvency proceedings — hiding assets, preferential treatment of creditors, artificial insolvency, or mismanagement of a company in financial distress.
Possible defense angles
- →Distinguish between poor business judgment and criminal conduct
- →Challenge the causal link between conduct and insolvency
- →Argue legitimate business decision-making
- →Timing of knowledge of insolvency is crucial
Accounting Fraud / Falsification of Records (Zkreslování údajů o stavu hospodaření)
§ 254 Criminal Code
Intentionally falsifying, distorting, or failing to maintain proper business and accounting records in a way that harms creditors, shareholders, or the public interest.
Possible defense angles
- →Challenge intent — negligence vs. deliberate falsification
- →Demonstrate no harm resulted
- →Argue technical accounting errors not criminal
- →Responsibility of external auditors
Under Investigation for Economic Crime?
Act now — before charges are filed. Early intervention by an experienced lawyer can fundamentally change the outcome.