Tax & Legal Update
Tax penalty with a prison sentence on top?
One of the topics frequently discussed by Czech judiciary and tax professionals is the concurrence of administrative and criminal sanctions. A crucial issue here is the relationship between a penalty imposed in tax proceedings, and a subsequently…
OECD issues release on reviews conducted within BEPS
The Organisation for Economic Cooperation and Development (OECD) has issued a release that updates the results of preferential regime reviews conducted by the Forum on Harmful Tax Practices (FHTP) in connection with Action 5 under the Base Erosion…
Labour Inspection’s statistics: breaches of Labour Code not worthwhile
The State Labour Inspection Office conducted nearly 25 thousand inspections and collected over CZK 218 million in fines in the past year, according to the published results of inspections of compliance with labour-law regulations. Inspectors mainly…
Another step towards a common capital market
In March 2018, the European Commission prepared a set of legislative proposals aiming to promote alternative sources of financing and remove barriers to cross-border investments. The EU thus continues its efforts to create a Capital Markets Union,…
2019 amendment to VAT Act: first four biggest changes
The amendment to the VAT Act has passed through its comment procedure and is about to be submitted to the Chamber of Deputies. Below we present the first four most significant changes.
Changes to 2019 tax package: corporate income tax
The proposed amendment to the Income Tax Act has passed through external comments and is now available in the government’s public electronic library, with some fundamental changes to its wording compared with the previous version.
CJEU again ruled on transport in chains of transactions
In its February decision (C-628/16), the Court of Justice of the European Union (CJEU) again dealt with how to attribute transport or dispatch to two successive intra-community supplies. According to the CJEU, transport may not be ascribed to the…
End of never-ending story on concurrence of offices?
Czech judiciary again dealt with the (un)acceptability of the concurrence of offices, i.e. whether members of a corporation’s statutory body may at the same time perform activities for the same company under an employment relationship. This time,…
CJEU: deduction of VAT on input must be allowed upon assessment of additional VAT on…
Recently, the Court of Justice of the European Union (CJEU) dealt with two interesting and in principle similar cases that both involve the rectification of incorrectly declared supply in terms of VAT. Whereas national courts denied the customer’s…
Dependent agent permanent establishment
The Regional Court in České Budejovice held that if an agent’s activity forms a separate and essential part of a non-resident taxpayer’s activity, it gives rise to the taxpayer’s permanent establishment in the Czech Republic. The activity does not…
Substance-over-form rule not applicable to research and development allowances
In its judgement No. 3Afs 304/2016 – 37, the Supreme Administrative Court (SAC) confirmed once again that compliance with formal essentials stipulated by the Income Tax Act is a prerequisite for claiming research and development allowances. If…