The SAO scrutinised the revenues of the state budget from labour taxation
Published: 4 May 2020
In the audit No 18/32, the SAO scrutinised whether the system for monitoring work performance and the administration of the income tax, insurance premiums and fines was effective in terms of the impact of illegal employment and tax optimisation on the revenues of the state budget.
Income from labour taxation
CZK 512 billion
Collection of income tax from dependent aktivity in 2016-20181
CZK 1,371 billion
Collection of social insurance including accessories in 2016-20182
CZK 400 million
MoF estimated income tax evasion in the area of illegal employment in 20153
Up to CZK 3 billion
The SAO estimated the loss of income and social insurance from identified illegally employed persons in the years 2015-20184
CZK 50 billion
RILSA estimated annual loss of income tax, social insurance and health insurance due to illegal employment5
1] Source: Information on the Activities of the Financial Administration of the Czech Republic for 2018.
2] Source: Report on the Activities of the Czech Social Security Administration for 2018.
3] The MoF performed an estimate of the loss from personal income tax in the area of illegal employment in 2015 on the basis of non-public data of the CSO (Czech Statistical Office).
4] The SAO made an estimate of the loss from tax and social insurance applied to the minimum and average wages of persons who had performed illegal work in 2015-2018 (as was discovered by labour inspection authorities), provided that the work of these persons was performed within one year.
5] The Research Institute for Labour and Social Affairs made an estimate of the annual loss of personal income tax, social insurance and health insurance due to illegal employment, according to the definition of Act No 435/2004 Coll., on Employment, in the terms of the years 2012 and 2013.