Originally posted by WaraiOtoko
yeah, I'm mostly interested in taxation of poker income. Also what is the situation when I leave my funds on e.g. moneybookers, and they never enter Czech banking system? Am I supposed to declare it or it isn't even traceable?
Any news regarding poker regulation would be nice as well. 
Well, the thing has two angles
Technically speaking
If you live in the Czech Republic (respectively the Czech tax legislation would say more precisely if you either (i) have a permanent flat in which you plan to stay or (ii) spend more than 183 days in respective calendar year, in the Czech Republic), you are considered to be the Czech tax resident. The Czech tax residents are liable to tax on their world wide income. It means if you receive any income from abroad (say from Full Tilt Poker), it is subject to taxation in the Czech Republic based on the Czech tax legislation. It does not make any difference whether you keep money on the foreign bank account, offshore or elsewhere becase the legislation says that as a tax resident, you have to tax your worldwide income in the Czech Republic. It is the responsibility of tax payer to file the income tax return until the 31st March of the following year (i.e. for the year 2010, you should file tax return until 31st 2011).
Risk of detection
Let´s assume that a player forgets to tax his income from poker or just decide not to tax it. What would happen then?
1. Tax authorities are empowered to do the tax audit investigating the tax matters of any tax payer, whereas they can audit the tax period old max 3 years (i.e. in 2011, they can audit tax year 2008 and younger).
2. If they discover a tax underpayment or the breach of obligation to tax some income, they can assess the tax penalty and late payment interest. In general, for the period 3 years back, the penalty and late payment interest can ultimately double the tax liability. (i.e. if tax payer should have reported and payed 10k of tax in 2008, he will pay approx 20k of tax incl. the penalties in 2011 if discovered by tax authorities).
3. On the top of that, if the tax authorities believe the tax payer´s breach of obligation to tax his income is of a nature of tax fraud, they can sue the tax payer and in the end, if found guilty, he can be even inprisoned for couple of years depending on the amount of tax fraud. In order to be found guilty for tax fraud, two conditions must be fullfilled - (i) it is proven that the tax payer wanted to disobey his tax obligations (i.e. he wanted to do a fraud) and (ii) the amount of fraud (not paid tax) is higher than 50k CZK (approx 2,6k $).
4. What is the probability that the tax authorities start tax audit for the individual? Well, the tax authorities can´t control all the tax payers. Effectively, they focus only on the big players and are not concerned with the small fish at all. They mostly control the corporates and rich individuals only. For example in Prague 8, the corporation is tax audited on average once in several hundred of years. (ofc the big corporations are audited regularly). So for average grinder, the probability of tax audit by random choice is rather small (close to zero).
5. On the other hand, banks and other corporations are obliged to report non-standard transactions in the bank accounts of their clients. And if there would be remarkable amounts credited to the bank account (in Czech bank) of the Czech poker player, that will of course increase the probability that the bank reports the owner of the bank account to tax authorities. If the bank is foreign entity, the chance of being reported is smaller, but still exists based on the billateral agreements on cooperation in tax matters between the 2 states at hand (Czech Rep as a state of poker player and the state where the bank is resident). This may be actually the case also for the poker room, where the player plays. Tax authorities can try various activities to get the information from the poker room. I know about one case where the poker room reported a Czech player to the Czech tax authorities on the amount of his winnings. (some of you surely remember the tax scandal in 2008 when the employee of the LGT bank sold the data of the clients - valuable info for tax authorities. You can google it "LGT bank scandal 2008").
6. So all in all, it is greatly recommendable to fullfil your tax obligations and tax your poker income if you have some and not to risk problems with tax authorities.
7. In case you don´t want to tax your poker profits and do not breach any law, you need to become tax resident in some state, where the poker winnings are tax exempt. For example - if you look at PTR or other poker ratings of the countries, you will find Gibraltar as No. 1 of total poker winnings per inhabitant. Guess why? The poker winnings are fully tax exempt here. So many poker pros move here to live here and be tax resident in Gib. I think the Monaco should be similar case - but it is prly much more expensive to live there.
Hope this clarifies your question. btw I am quite confident that the above concept is generally the case also for Slovakia and almost every other EU country. Feel free to ask more.
(my comments on regulation of poker market in CZ will follow later this week).
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