Czech police expose massive tax evasion network linked to US, UAE, and Hong Kong

The Czech Republic has uncovered the largest tax evasion scheme in its history, with state losses reaching 4.7 billion CZK. The suspects allegedly imported electronics from the US, UAE, and Hong Kong through fake companies registered in the EU.

Source European Public Prosecutors' Office

Official records showed shipments to Poland, Hungary, and Slovakia, but investigations revealed that the firms were fictitious and no goods were ever delivered. The operation enabled the group to evade taxes and VAT by using a web of shell companies across several countries.

During Operation “Záblesk,” police arrested 6 of the 10 suspects, who now face up to 10 years in prison. Authorities also seized assets worth 42 million CZK, marking the biggest financial crime case in Czech police history.