Tax & Legal Update
Penalties for VAT ledger statements: new waiver options
The General Financial Directorate (GFD) is expanding options to waive penalties for the failure to file VAT ledger statements, or for their late filing, amounting to CZK 10, 30 or 50 thousand. It will be possible to waive up to two penalties for…
SAC on VAT exemption
In tax inspections, tax offices increasingly focus on VAT fraud connected with the transit of goods. What to watch out for when delivering goods to another EU member state, and how not raise the tax authority’s suspicions? The recent Supreme…
Consideration for transfer of technical improvement – good news on the horizon?
In the autumn of 2014, the Supreme Administrative Court’s ruling, stating that the right to carry out tax depreciation of a technical improvement cannot be transferred between tenants, stirred the tax waters considerably. The case has now returned…
When is a corporation not criminally liable?
At the end of last year, the Supreme Court opined on the limits of corporate criminal liability. Case law in this field has been quite sporadic. In regards to last December’s amendment to the Corporate Criminal Liability Act, any ruling that…
How to keep R&D expense records separate
To claim a research and development deduction in a tax return, taxpayers have to correctly assess the activities, prepare a project documentation, and properly record related expenses, separately from other costs. But what exactly does such separate…
OECD makes blanket change to double tax treaties
In November 2016, OECD released a multilateral convention that will affect the application of double tax treaties. The instrument implements the outcomes of the BEPS Action Plan into more than 2 000 tax treaties. A signing ceremony has been planned…
Amendment to the Building Act simplifies construction permits
An amendment to the Building Act has passed its second reading in the Chamber of Deputies. The main change that it brings is the new concept of a joint zoning and building procedure, including the possibility to issue a joint ruling for such a…
Banks fighting cyber threats jointly
The Ministry of Finance is preparing an amendment to the Act on Banks and the Act on Savings and Credit Unions. Its primary purpose is to modify these laws according to changes that have been made to related legislation. Additionally, a new…
EU taking a closer look at cross-border posting of workers
Within cross-border provisions of services, many entrepreneurs post their employees to temporarily work in other EU countries. As the services’ users in economically stronger member states might easily misuse cheaper labour from abroad, since 1996…
Clarification of VAT regime on re-sale of telecommunication services
The General Financial Directorate (GFD) decided to respond to frequent inquiries regarding the purchase and sale of electronic communication services and issued a clarifying appendix to its already-published information. The application of a…
Amendment significantly expands reporting duties towards tax authority
In mid-February, the Ministry of Finance submitted an amendment to the Tax Procedure Rules for an accelerated comment procedure. This amendment should ensure access to other information about taxable entities and their bank accounts to tax and other…