Tax & Legal Update
Courts clarify conditions for awarding interest on tax administrator’s wrongful…
Winning a dispute with the tax authority may be compensated by interest awarded on the grounds of the tax administrator’s unlawful conduct. Its amount equals the Czech National Bank’s repo rate plus 14 percentage points, which means that it…
Ministry of Finance prepares legal tool regulating tax relations with Taiwan
For an external comment procedure, the Ministry of Finance has submitted a bill to prevent double taxation in relation to Taiwan. As the Czech Republic does not recognise Taiwan as an independent state, it is not possible to enter into a double…
Another step towards EU copyright reform
The media has recently been overflowing with news about the European Parliament approving a directive on copyright on the internet, including articles about a threat to freedom on the internet or the end of the internet in its current form. What…
Supreme Public Prosecutor’s Office updates methodology for corporate exoneration
Public prosecutors have so far lacked a tool to assess whether a corporate entity’s internal measures and efforts to prevent criminal activity are sufficient to avoid the entity’s criminal liability for their employees’ wrongdoings. An updated…
2019 amendment to VAT Act: changes to original wording
The 2019 amendment to the VAT Act, discussed in the previous issues of our Tax and Legal Update, has undergone a number of first changes, including, e.g., a change in the General Financial Directorate’s approach to the adjustment of VAT relating to…
TRIO programme accepting applications within the fourth call
The Ministry of Industry and Trade announced the fourth call to participate in the TRIO subsidy programme, focusing on support of operating expenses for industrial research and experimental development projects. Compared with the previous calls, the…
Stricter criteria for granting investment incentives
Following discussions regarding the future of investment incentives, the government plans to use this important investment tool to respond to the actual needs and priorities of the Czech Republic and focus on projects with a higher added value. In…
Generally applicable reverse charge mechanism
At its October session, the Economic and Financial Affairs Council (ECOFIN) approved a proposal allowing the EU member states to temporarily implement a generalised reverse charge mechanism until 2022.
Clearer rules for cross-border tax dispute resolution
In the autumn of 2017, the long-awaited EU directive on tax dispute resolution mechanisms in the European Union was passed. It aims to unify international cooperation in the resolution of tax disputes mainly arising from interpretation ambiguities…
Concurrence of offices, yet again
The concurrence of offices is an evergreen in corporate law. The present back-and-forth exchange of opinions between the Supreme Court and the Constitutional Court is certainly interesting. But will they finally arrive at a straightforward result?
SAC on proving intra-group services
In November 2017, the Regional court in České Budějovice ruled against a taxpayer in a dispute concerning the provision of services within a group. The court agreed with the tax administrator’s conclusions as to the lack of probative value of the…
Transfer price checks also in personal income tax inspections
Transfer prices between related parties remain a priority of tax administrators’ inspection activities. As much as the general public believes that this only concerns corporate entities and cross-border transactions, the recent Supreme…