Tax & Legal Update
SAC: additional tax may be assessed even if tax inspection is unlawful
Less than three month ago, we informed you about recent case law in which the Supreme Administrative Court (SAC) confirmed that tax administrator had proceeded unlawfully by not giving the taxpayer the chance to correct their error by filing an…
Super-gross tax base for benefits from third parties – the case continues
In July 2018, the Regional Court in Hradec Králové confirmed the duty to apply the “super-gross tax base” also for benefits provided to employees by third parties. The issue was now dealt with by the Supreme Administrative Court, which did not…
Tax administrator must not assess evidence put forward with bias
If a taxpayer produces evidence in tax proceedings, a tax administrator must assess such evidence both separately and in combination. If they have doubts about the evidence, they may invite the taxpayer to submit further or different evidence. They…
SC on proportionality of penalty under non-compete clause in employment contract
The Supreme Court (SC) dealt with the case of an employee bound by a non-compete clause who terminated employment with one employer and the following month began employment with a competitor. The former employer demanded that the employee pay a…
Decision on digital services tax postponed
The Economic and Financial Affairs Council (ECOFIN) did not pass the draft directive on digital services tax at its meeting on 4 December 2018.
Deal or no-deal. Brexit from an intellectual property rights viewpoint
Brexit, probably next year’s most important international event, will significantly affect many areas: from EU citizens’ rights, through finance sector regulations to the enforcement of British court judgments in the EU (and vice versa, of course).…
Have you registered your beneficial owner yet?
From January 2018, entities recorded in Czech public registers have to register their beneficial owners in a new register maintained by the registration courts. The law set a one-year time limit to do so. The deadline is slowly drawing to an end,…
GFD: Assessing transfer prices and determining a permanent establishment’s tax base,…
In November, the General Financial Directorate published new Instruction D – 32, dealing with a binding assessment of the manner in which the price agreed between related parties and the tax base of a tax non-resident relating to activities…
Subsidy opportunities for entrepreneurs in 2019
The time schedules for calls planned in 2019 within subsidy programmes have been published. Below we provide a short overview.
2019 amendment to the VAT Act: What changes may the amending proposals bring?
An amendment to the VAT Act, with planned effectiveness during the course of 2019, has recently passed through the second reading in the Chamber of Deputies. Below we present a number of submitted amending proposals.
Seven tax news items for employers and employees in 2019
The maximum assessment base for social insurance and the minimum wage will increase, which will also affect other mandatory payments and tax credits. The waiting period, i.e. the first three days of a temporary inability to work during which…
Do you have a subsidiary? Beware of indirect shareholding costs
Taxpayers have two options in treating the indirect costs of holding a share in a subsidiary: either to prove their actual amount, or to apply a legal simplification and exclude an amount equal to 5% of dividends received as a non-deductible expense…