Tax & Legal Update
Private enforcement of competition law made easier
The new Act on Compensation of Damage in the Area of Competition has successfully passed through the legislative process. It should make it easier to claim civil damages for the infringement of competition laws through cartels or abuse of dominant…
Three changes to employee taxation
Tax exemption of employee benefits expanded. New deductible item for bone marrow donation. Further increase in minimum wage in 2018.
Public call for the energy sector’s THETA programme to be announced in autumn
In autumn, the Technology Agency of the Czech Republic will announce the first public call for participation in the THETA programme, aiming to support applied research, experimental development and innovation in the energy sector. The programme is…
SAC on direct link between non-deductible expenses and taxable revenues
The Supreme Administrative Court (SAC) issued a ground-breaking ruling relating to problematic Section 24 (2)(zc) of the Income Tax Act effective until the end of 2014, giving the opportunity to reassess the treatment of non-deductible expenses with…
Not only personal income tax under Supreme Audit Office’s scrutiny
From June 2016 to this spring, the Supreme Audit Office (SAO) examined personal income tax administration and its examination outcomes do not spare the financial administration from criticism. In its report, the SAO estimates how much the…
VAT Act amendment lets tax administrators cancel VAT group registrations earlier
The amendment to the VAT Act effective from 1 July 2017 accelerates the process of terminating VAT group registrations. Where the registration is terminated ex officio, the registration terminates at the moment the tax administrator’s decision…
Fast-growing number of unreliable payers
The unreliable payer concept has been in the VAT Act since 2013. According to the GFD, in combination with the taxable supply recipient’s liability for unpaid VAT, this concept should serve as an effective tool to fight VAT evasion, whereas the…
SAC: VAT not a part of immovable property acquisition tax base
The Supreme Administrative Court (SAC) in its recent judgement surprisingly diverged from the explanatory report on the Senate’s Statutory Measure on the Tax on Acquisition of Immovable Property. According to the report, the agreed-upon price for…
Possible defence against prejudiced expert witnesses
The Supreme Administrative Court (SAC) previously ruled that if the tax administration doubts the nature of activities for claiming an allowance for research and development, it should obtain an expert’s opinion. In the court’s view, only an expert…
Lafata scores against tax authorities
The Supreme Administrative Court reversed a lower court’s decision on the taxation of the Czech football player David Lafata’s income. The SAC granted his arguments that a professional football career may be viewed as a trade. This hence should…
Regional court says no to the concurrence of liability for VAT and denying the…
The tax administration has numerous tools to fight VAT fraud and evasion, including denying the entitlement to VAT deduction or instating customers’ liability for VAT not paid by their suppliers. And tax administrators do not hesitate to use these…