A recent analysis by the General Prosecutor's Office reveals that a revision of the criminal code has made tax fraud easier and resulted in lower tax revenues than anticipated by the Slovak government.
The latest analysis from the General Prosecutor's Office indicates that changes made to Slovakia's Criminal Code have inadvertently facilitated tax fraud, allowing tax evaders to thrive. The amendment, which came into effect from August 2024 to February 2025, led to the termination of numerous criminal proceedings prior to their initiation, with a total of 1,152 cases stopped and 1,169 ongoing cases closed, leaving many individuals uncharged. This revision was intended to improve legal outcomes but has instead stripped prosecutions from many individuals, including 681 private citizens and 106 legal entities, resulting in serious implications for state revenue.
Particularly affected by this legislative change were major cities such as Žilina and Bratislava, where a high number of cases were halted before prosecution could begin. Conversely, cities like Košice and Prešov saw the highest numbers of defendants who benefited from this new leniency in law. The analysis suggests that prior governmental assurances about fighting tax fraud have been undermined by legal modifications that critics argue have created loopholes favoring tax violators, further complicating the government's fiscal challenges.
In light of these findings, the government's assertion of combatting tax evasion appears increasingly contradictory to the reality reported by the General Prosecutor's Office. As the state grapples with lower-than-expected tax collections, this analysis raises urgent questions about the effectiveness of legislative changes and governmental strategies aimed at ensuring tax compliance and upholding justice in financial matters.
