Tax & Legal Update
How not to turn a mole hill into a (tax) mountain
Did you buy, sell or acquire real property in 2018? Did you make changes to the real property or in the Real Estate Cadastre in 2018? Take care when filing your real property tax return, since even a small tax amount can get very expensive!
Changes to R&D allowances already in legislative process
A working group consisting of representatives of business federations and associations, the Ministry of Finance and the General Financial Directorate has agreed on changes to the R&D allowance. These have recently been passed as part of the tax…
Chamber of Deputies passes tax package – highlights
Just before the holidays, the Chamber of Deputies passed the so-called tax package (Print No. 206). The draft amendment still needs to be discussed by the Senate in January. Below, we draw attention to some changes in personal income tax and VAT.
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…