Tax & Legal Update
Tax administrators obliged to continuously review conditions for securing tax
An order to secure tax (a securing order) issued by a tax administrator should not be permanent or irreversible. The taxpayers themselves may contribute to its end. At the same time, tax administrators have the duty to regularly review the…
2017 OECD Transfer Pricing Guidelines
On 10 July 2017, the long awaited 2017 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2017 Transfer Pricing Guidelines) were released. The new edition counting 612 pages replaces the previous Transfer Pricing…
Legal electronic system for entrepreneurs
The Chamber of Deputies is currently discussing a draft amendment to the Act on the Czech Chamber of Commerce. The amendment also introduces the Legal Electronic System (LES). Aiming to make the business environment in the Czech Republic more…
OECD releases draft update of Model Tax Convention
The OECD Committee on Fiscal Affairs has just released a draft update of the OECD Model Tax Convention. Neither the Committee on Fiscal Affairs nor the OECD Council have yet approved the update, but some significant parts have already been…
Constitutional Court puts a brake on the right to information
The right to information, protected by the Charter of Fundamental Rights and Freedoms and further elaborated on in the Act on Free Access to Information and some other laws, is one of the evergreens of administrative justice. The Supreme…
Stats and facts about the tax administration’s 2016 activities
The Czech financial administration has recently released a report on its activities for 2016. It states that tax revenues grew by nearly ten percent year-on-year, thanks to the tax administrators’ increased activities in the inspection area. At the…
Country-by-country reporting – changes on the horizon
At the last session of the Chamber of Deputies of the Czech Republic, further progress was achieved in passing the amendment to the Act on International Cooperation. The Act implements a new information exchange duty, i.e. country-by-country…
SAC: Partial payment orders may not be issued
According to the Supreme Administrative Court, the Tax Procedure Rules do not allow the issuance of a payment order for only a portion of tax. This means that VAT payers from whom the tax administrators retain excess deductions sometimes amounting…
Misuse of company credit card ruled legitimate reason for terminating employment
The Supreme Court recently dealt with a case involving the controversial use of a business payment card. The employer believed that the employee had misused the card and immediately terminated the employment. The employee objected that he had not…
New EU rules on reporting aggressive tax planning
In late June, the European Commission released a draft of new rules imposing the duty to inform tax administrators of tax planning schemes. It is yet another EU initiative to tackle tax avoidance and evasion.
MiFIDII implemented by Capital Market Undertakings Act
In late June, the president signed a significant amendment to the Act on Business Activities on the Capital Market (Capital Market Undertakings Act) and other legislation regulating the provision of financial services. The amendment is a part of the…
Stricter conditions for agency employment
The long-in-preparation amendment to labour laws that changes the agency employment conditions has successfully passed through the legislative process. Employment agencies and users of agency employees have to get ready for new duties. On the other…