‘Keeping of assets’ for investment incentive purposes – to own, or not to own?

The Supreme Administrative Court (SAC) held that to prove compliance with the condition of ‘keeping the assets’, it should suffice that the investment incentives recipients prove that the assets were kept in the supported region, regardless of the…

How to time resignation to comply with due managerial care

According to the Supreme Court (SC), members of a corporation’s elected body may resign from their offices and the corporation cannot stop them. However, if they do so at a time unsuitable for the corporation, they shall be liable for the damage…

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.…

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…

SC on breach of work duties by bank employee

The Supreme Court (SC) confirmed the validity of an immediate termination of employment of a bank employee working as a cashier. Entirely in line with its previous case law, it confirmed that duty breaches by bank employees must be viewed more…

Not keeping track of the other statutory representative? You are jointly liable for…

The Supreme Court (SC) is sending a warning to statutory representatives in limited liability companies: if you do not monitor your colleagues, you are in breach of the fiduciary duty / due managerial care, therefore co-liable for damage that would…

Surprising SAC judgment on taxation of income from sale of securities by individuals

The Supreme Administrative Court (SAC) opined on how individuals should proceed when determining the tax base for the sale of securities in foreign currencies (2 Afs. 4/2019 -38). The court held that the Income Tax Act gives taxpayers the option to…

SAC: vacation compensation to be included in R&D allowance

In recent judgement 1 Afs 429/2018, the Supreme Administrative Court (SAC) expressed its opinion on a widely discussed question: whether wage compensation paid to employees on vacation may be included in expenses claimed within a research and…

Financial administration’s employee bonuses for additionally assessed tax criticised…

The Supreme Administrative Court (SAC) commented on the possible bias of tax officers who had assessed additional tax for errors concerning research and development allowances. Early in 2016, the financial administration issued rules on awarding…

Operation of ATMs not VAT exempt

In the Cardpoint (C-42/18) case, the Court of Justice of the EU (CJEU) held that services comprised of the operation and maintenance of ATMs, including their replenishment and software and hardware installation, are not ‘transactions concerning…

CJEU: German withholding tax on dividends paid to pension funds contrary to EU law

The Court of Justice of the EU (CJEU) issued a ground-breaking judgment concerning German withholding tax on dividends paid to foreign pension funds. According to the court, the withholding tax restricts the free movement of capital and is therefore…

Breaches of corporate representation rules and their consequences

In practice we often see that according to the entry in the Commercial Register, at least two statutory representatives should act jointly on behalf of a company, while in reality, contracts are signed by just one of them. Is a contract executed in…