Case Explained: Criminal law amendment halts thousands of tax crime cases, prosecutors warn – Legal Perspective

An amendment to Slovakia’s criminal legislation has resulted in the termination of thousands of tax crime cases, raising concerns among prosecutors that the reform has significantly weakened the country’s ability to tackle serious economic offences.

An internal analysis by the General Prosecutor’s Office indicates that more than 2,300 cases involving tax evasion, VAT fraud and the non-payment of social contributions were discontinued after the amendment entered into force in August 2024. In almost 700 cases, individuals or companies had already been formally charged before proceedings were stopped.

The review covered the period from August 2024 to the end of February 2025 and focused on how changes to statutory limitation periods and higher damage thresholds affected tax-related offences. Prosecutors did not publish estimates of the total financial losses involved, according to Denník N.

Thousands of cases halted

According to the findings, police terminated 1,152 cases at the preliminary verification stage, before criminal prosecution had formally begun. Most of these were halted because the alleged damage no longer met the revised criminal thresholds or because the offences had become time-barred. Only a small share were reclassified as administrative offences.

More serious consequences emerged in cases where investigations were already under way. Prosecutors stopped a further 1,169 cases after criminal proceedings had been opened. Of these, 314 involved suspects who had already been charged. In total, the discontinued proceedings concerned 681 individuals and 106 legal entities, all of whom will now avoid trial.

VAT fraud and legal inconsistencies

Prosecutors argue that the amendment introduced inconsistencies in how tax crimes are treated under the law. While criminal liability for some offences – including tax evasion and failure to pay tax – applies from damages of €700, others – including tax fraud and failure to pay insurance contributions – only become criminal above €20,000. In practice, prosecutors say, the behaviour involved is often similar, as offenders deliberately mislead the state, most commonly through the tax authorities.

Particular concern has been raised about VAT fraud, especially the fraudulent claiming of tax refunds. Prosecutors note that such crimes directly remove funds already available to the state and therefore pose a higher risk to public finances. Several regional prosecutor’s offices have proposed lowering the criminal threshold for VAT fraud to the minimum damage level (€700).

The Council for Budget Responsibility notes that last year the state collected around €1.2 billion less in tax revenue than expected. Nearly €700 million of that shortfall came from VAT.

Enforcement under pressure

The prosecutors’ analysis also points to structural problems within law enforcement. Tax crime cases are increasingly being handled by police officers without specialised experience, while financial crime units face staffing shortages. Prosecutors warn that this weakens investigations and places additional strain on prosecutorial oversight.

Prosecutors say their analysis also shows that only a handful of indictments were filed during the period reviewed. The anti-corruption group Zastavme korupciu has reported similar findings.

The findings come amid broader warnings about tax enforcement in Slovakia. European Chief Prosecutor Laura Codruța Kövesi has previously described the country as a major hub for VAT fraud within the EU, while General Prosecutor Maroš Žilinka described the country’s fight against corruption under Prime Minister Robert Fico as “catastrophic” last week.

Žilinka criticised recent criminal law changes and the police, despite having raised no objections when the Fico-led coalition approved the reforms. He has also rejected claims that the abolition of the Special Prosecutor’s Office weakened the anti-corruption fight, even though he did not oppose its dissolution in spring 2024.

Police chief Jana Maškarová said on 10 February that recent structural changes within the police — including the dissolution of the National Crime Agency (NAKA) in September 2024 and its replacement by the new ÚBOK unit — were linked to the closure of the Special Prosecutor’s Office, after corruption cases were redistributed to prosecutors’ offices nationwide. She also dismissed claims that inexperienced investigators are now handling corruption cases. According to her, the investigators have an average professional experience of 15 years.

Police figures show that ÚBOK successfully investigated 41 of 74 corruption cases in 2025, a 55 percent clearance rate, down ten percentage points from 2024. The total number of cases was lower in 2024 than in 2025, which police chief Jana Maškarová attributed to organisational changes.