The Financial Administration of the Czech Republic has successfully prevented tax evasion in the gambling sector amounting to CZK 540 million. Through a specialized financial department, authorities identified discrepancies in financial flows within casinos and gambling operators for the years 2021 and 2022. The findings were made public in a press release yesterday. The tax evasion was uncovered through a detailed analysis of gaming data, which revealed unusual player behavior and suspicious financial transactions. During an inspection of a gambling operator, the authorities detected irregularities that led to an additional tax assessment of CZK 340 million. The audit further uncovered errors in the reporting of fees and commissions, resulting in an extra tax obligation of CZK 200 million. “Gambling is a highly regulated sector with significant tax revenues, which is why it is crucial for us to systematically minimize opportunities for illegal practices. This achievement demonstrates that our efforts have a tangible impact on market fairness and tax collection,” stated Otakar Sladkovský, Director of the Specialized Tax Office. Although gambling tax is a relatively smaller contributor to the state’s overall tax revenues, it remains an important source of income. Last year, gambling taxes generated CZK 20.6 billion, reflecting a 12.5 percent increase compared to the previous year. Of this amount, CZK 14.2 billion was allocated to the state budget, while the remaining funds were distributed among municipal budgets. In total, tax revenues for the previous year, excluding compulsory insurance premiums, amounted to CZK 1.42 trillion. The Financial Administration’s latest success underscores its commitment to enforcing tax compliance and ensuring a level playing field in the gambling industry. Authorities continue to strengthen oversight and employ advanced data analysis to detect fraudulent activities and safeguard public finances. Source: CTK