Criminal liability touches all Czech legal persons and entities that do business on the territory of the Czech Republic and it also applies to offences committed abroad.
The company is responsible if it commits an offence in its own name or in the framework of its activities or if it is committed by an employee authorised by the statutory authority or by an authorised superior.
It concerns, in particular, offences against property (e.g., fraud), economic (reduction of taxes, fees and similar obligatory payments, the non-payment of taxes, insurance premiums on social security and similar obligatory payments, failure to comply with the notification requirement in the tax proceedings, distortion of the data on the status of the management and assets, etc.), and more.
The legal persons can be punished by, for example, the confiscation of property, a financial penalty or even dissolution of the legal person, the prohibition of the performance of public contracts or the prohibition of the acceptance of grants and subsidies.
Martin Strnad
+420 251 152 904
Source: PwC Legal; Tax, Legal and Business News, January 2012
www.pwc.cz/tbn
