Tax & Legal Update
Deputies approve amendment to VAT Act
The chamber of deputies approved a government bill to amend certain tax laws, including the VAT Act and the Tax Procedure Rules. Amendments to both of these acts are to become effective on 1 April 2017. The summary of major changes in VAT focusing…
Expected income tax changes
A tax package, containing changes in income taxes, VAT and tax procedure rules, has passed its third reading in the chamber of deputies and is currently moving to the senate. The important changes to the Income Tax Act that have already been…
The limits of formality in bank guarantees
The recodification of private law in effect from 1 January 2014 was meant to bring a reduced level of formality in legal relations. Even this, however, has its limits, as shown by a recent decision of the Supreme Court. Discussing a case involving a…
The SAC: Are statutory representatives liable to VAT?
In its recent judgment (2 Afs 100/2016–29) the Supreme Administrative Court held that the performance of an office as statutory representative in a limited liability company meets the criteria of an independently performed economic activity and…
What information may the tax authority ask from your bank?
How resistant is bank secrecy against a call made by the tax authority? What questions about your account must your bank answer? Will the tax administrator learn from your bank that you use internet banking and who has disposal rights to your…
ECOFIN postpones extension of ATAD
At their December session, the EU finance ministers (ECOFIN) negotiated the anti-tax avoidance directive, ATAD2. Some issues remain open, such as the financial sector’s exception from the rules and the member states’ date of transposition of the new…
An end to malicious insolvency petitions?
The Senate is currently debating an amendment to the Insolvency Act, aiming, among other things, to introduce the preliminary assessment of insolvency petitions if maliciousness is suspected. The amendment should also limit the influence of…
Into the new year with an amended Civil Code
Two days before the third anniversary of the Civil Code’s effective date, its first overall amendment was published in the Collection of Laws as Act No. 460/2016 Coll. It has brought about some significant changes, the most crucial of which we…
Employees back on supervisory boards
The historically first amendment to the Corporations Act found its way through the legislative process and a day before year-end was promulgated in the Collection of Laws under No. 458/2016 Coll. With it, for some companies, the familiar duty of…
Stricter control over employees’ personal data protection
The legal framework regulating the handling of employees’ personal data is going through significant changes. One of them is the adoption of the EU General Data Protection Regulation (GDPR), substantially changing the rules for the treatment of…
International tax information exchange extended
Another amendment to the Act on International Cooperation in Tax Administration is to introduce a new duty to share information about financial results, performed activities, staff numbers and many other indicators.