Seven individuals and two companies are facing charges of money laundering and illegal tax cuts worth more than CZK 131 million, a police press release announced on Wednesday. The charges were brought following a series of raids by the special “Tax Kobra” unit of the Czech police, which started in late October. Defendants could face up to 10 years in prison if convicted.
According to the police, crimes were committed by issuing fictitious or purposefully overstated invoices from 2013 to 2018. A system of purpose-built chains of companies was used in committing the crimes. So-called “white horses”, individuals set up to commit a criminal offense and cover the actual perpetrator, were apparently put into the statutory bodies of companies that continued to be run by the defendants.