VAT on fuel cards to be affected by CJEU case law

Fuel card transactions are operated all across the EU. Therefore, some new measures being implemented in just some of the member states might be problematic. Hence, most EU states are still reluctant to apply the Court of Justice of the EU’s…

Municipal Court in Prague: tax returns declaring lower tax may not be filed after…

The deadline for filing an additional tax return is the end of the month following the month in which a taxpayer learned that the tax concerned had been determined incorrectly, irrespective of whether an additional tax return declares a lower or…

Application of beneficial ownership and anti-abuse principles in the EU 

Courts across the EU have been inspired by the so-called Danish judgements of the Court of Justice of the EU, and so some national courts’ decisions on the taxation of dividends and interest payments received by holdings have followed the beneficial…

Quick fixes: GFD information and amendment to EC explanatory notes

The Czech amendment to the VAT Act implementing quick fixes is still waiting for its second reading in the Chamber of Deputies. At the end of January, the General Financial Directorate disclosed information confirming the option of invoking the EU…

Labour Inspection Office focuses on concealed mediation of employment – CZK 10…

The fact that illegal work is closely watched by the Czech Labour Inspection Office is nothing new for employers. ‘Svarc’ systems (where workers formally maintain a self-employed status while in fact carrying out dependant work) or the employment of…

Transfer prices targeted by auditors

January is traditionally a month in which KPMG’s tax department becomes involved in the examination of the financial statements of its audit clients, as transfer pricing may be associated with significant tax risks. Our audit teams assess these…

News in cross-border business conversions – demerger by separation

Demergers as a form of business conversion quite common in the Czech context and a useful tool to manage risks and tax aspects of transactions, have finally been harmonised on the EU level. The amendment to the respective directive introduces new…

Latest news, February 2020

Last month’s tax and legal news in a few sentences.

Ministry of Finance income tax plan for 2021

2020 has just begun, but two new amendments to the Income Tax Act for 2021 are already being discussed. The ministry is planning to introduce a lump-sum tax for selected individuals, monetary contributions for employee meals and the cancellation of…

Government (not) approving investment incentives

Three applicants for investment incentives were denied financial support to acquire fixed assets by the government. Applications for the support of strategic investment projects were submitted by investors under the previous legislative regime. Aid…

Amendment to the Labour Code (part 1): at least 160 hours of vacations for all

An extensive amendment to the Labour Code has been on the deputies’ agenda since January. In the upcoming issues of Tax and Legal Update, we will summarise for you the amendment’s major changes. In the first of a series of articles, we will look…

Unexpected CJEU judgment: commissionaire structure application

In Case C-707/18, regarding Romanian law, the Court of Justice of the EU (CJEU) dealt with an issue concerning the purchaser who in their own name and at their own expense ensured administrative acts necessary to complete a sale of plots of land.…