The question of the line between a tax error and a criminal offence is one of the most common topics in the practice of business owners and experts alike. The Slovak Criminal Code No. 300/2005 Coll. sets out the rules for when an act is "only" a legal delict and when it constitutes criminal liability. The decisive factors are primarily the form of culpability and the extent of the damage caused.
We bring you an overview of the most common tax offences and explain what actions can lead to criminal liability.
Intent or negligence?
- Intentional culpability (§ 15 of the Criminal Code): A criminal offence is committed intentionally if the perpetrator intended to violate or endanger an interest protected by law, or knew that their actions could cause such a violation and consented to it.
- Negligence (§ 16 of the Criminal Code): Negligence occurs when the perpetrator knows that their actions could cause a violation of the law but relies on it not happening, or is unaware of the consequences, despite having the ability to be aware of them. Gross negligence involves a particularly indifferent or significant breach of duties and care.
According to § 17 of the Criminal Code, for natural persons, intent is required unless the law explicitly states that negligence is sufficient.
The most common tax offences
- § 276 – Tax and insurance premium abatement: Intentional reduction of declared tax or insurance premiums.
- Penalty: up to 3 years, for a larger scale, up to 10 years.
- § 277 – Non-remittance of tax and insurance premiums :Tax or insurance premiums were withheld (e.g., by an employer) but not remitted.
- Penalties are similar to those under § 276.
- § 277a – Tax fraud: Unauthorised claim for a VAT or excise duty refund on a larger scale.
- Penalty: from 6 months to 10 years, depending on the amount and circumstances.
- § 278 – Failure to Pay Tax and Insurance Premiums: The tax was correctly assessed but not paid.
- Criminal liability arises for non-payment above a statutory limit; the maximum penalty is 5 years.
- § 278a – Obstruction of tax administration: Providing false information in documents, concealing mandatory data, or failing to comply with obligations during a tax audit.
- Penalty: up to 6 years, regardless of the amount of damage.
- § 264 – Jeopardising tax secrecy: Unauthorised obtaining or disclosure of tax secrets to an unauthorised person.
- Penalty: from 6 months up to 8 years in serious cases.
Related economic criminal offences
In addition to purely tax delicts, economic criminal offences are also frequently assessed in practice:
- § 259 – Distortion of accounting data: Providing false data or concealing important information in statements or registers.
- Penalty: up to 8 years.
- § 251 – Unauthorised business activities: Conducting business without a license, including providing professional services without the necessary qualifications.
- Penalty: up to 5 years, depending on the damage caused.
- § 251a – Unauthorised employment: Employing persons without the necessary permits or under exploitative conditions.
- Penalty: up to 2 years, more in more serious cases.
Tax offences represent a serious area of criminal liability, where the line between an error and a criminal offence can be very thin.
The main determining factors are culpability (intent or negligence) and the extent of the damage. For businesses and individuals alike, it is therefore crucial to consistently comply with tax and accounting regulations and to consult an expert in case of doubt.
Be the first to know about the latest information from the world of taxation, accounting and auditing.
