STS: Businessman Marian K. Pleads Not Guilty to Tax Fraud

Banska Bystrica, 20 October (TASR) - The proceedings in the Donovaly and Bac case involving Marian K., Peter P. and Jana S. (names abbreviated due to legal reasons), who have been charged with tax fraud, continued at the Specialised Criminal Court (STS) in Banska Bystrica on Monday, TASR reported on the same day. Four people were originally indicted, but the criminal prosecution of Jan F. has been halted in the meantime. The indictment concerns excessive VAT deductions amounting to more than €8 million used in connection with the sale of real estate between several trading companies in the village of Donovaly (Banska Bystrica region). According to prosecutor Pavel Bella, "there were transfers of assets that made no economic sense. The same people kept using the real-estate properties, VAT was paid out, and we don't know how that money was used". Marian K. is also charged with damaging a creditor in connection with a public auction of the golf course near the village of Bac (Trnava region) for which the damages reportedly reached almost €3 million. He pleaded not guilty, as did Peter P. However, Jana S., with whom the prosecutor refused to enter into a plea bargain, made a guilty plea. In her case, the trial will focus on evidence-gathering relevant to determining her sentence. All defendants refused to testify during the main hearing. "After being charged, Jana S. gave a very brief statement. It seemed to me like a self-serving admission of guilt in order to avoid commenting on acts relevant to the criminal proceedings," said the prosecutor, explaining his refusal to enter into a plea bargain with her. Defence lawyer Michal Mandzak described the indictment as confusing. He said that the prosecutor is mixing up the concepts of abusing the law and tax fraud, which are clearly distinguished also in the case law of the Supreme Administrative Court. "I am convinced that this is definitely not tax fraud, which will become clear over time," added Mandzak. The defendants face sentences of three to ten years. As regards Marian K. who is already serving a longer sentence in connection with the promissory note case, the prosecutor said that it's likely that no additional sentence will be imposed. The trial held before STS was originally scheduled to begin in August of last year, but it was repeatedly adjourned due to the absence of defendants Peter P. and Jana S. Given the complexity of the case and the extensive evidence gathered during the pre-trial proceedings, the prosecutor insisted that the defendants must appear in person in order to be questioned. jrg/df