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| November 8, 2021

Verification of compensation bonuses

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Since the beginning of the pandemic, the Financial Administration has registered approximately 2.7 million applications for a compensation bonus, on the basis of which it has paid out over CZK 44bn. The GFD report shows that one out of a thousand applications was ineligible in the retrospective audit.

Compliance with the conditions for the granting of the compensation bonus, including its payment itself, is monitored. In cases where benefit misuse was found, the Financial Administration filed 133 complaints, which prevented the payment of approximately CZK 47m.

The Financial Administration is currently cooperating with other ministries as part of the investigation, due to the fact that some claimants may have received a compensation bonus and covid aid from other ministries at the same time, which is explicitly prohibited by law. This year, possible misconduct was found in the case of approximately 2,500 applicants.

The Financial Administration intends to continue to verify the legitimacy of compensation bonuses paid in other areas, including the payment of compensation bonuses to partners of limited liability companies. It will examine applicants to determine whether they have become liable to submitting personal income tax return based on the facts stated in their applications.

The Financial Administration will verify all these areas gradually at the end of this year and the beginning of next year.