Tax & Legal Update
“Perfect” documentation does not automatically guarantee deductibility for tax…
In its recent judgment (file no. 7 Afs 330/2016), the Supreme Administrative Court (SAC) again held that even an accounting document free of any formal deficiencies and containing all essential elements does not prove on its own that the declared…
CJEU again on conditions of exempt intra-community supplies of goods
In its ruling regarding intra-community supplies of goods, the Court of Justice of the European Union (CJEU) again confirmed the widely discussed possibility to attribute transport just to one supply within a chain of supplies. The ruling also…
Independent groups of persons and the financial sector
The end of September brought two ground-breaking rulings issued by the Court of Justice of the European Union (CJEU) that will significantly affect not only the financial sector. The CJEU judges finally provided their long-awaited answer to the…
Privacy for thieves
The Constitutional Court finally closed a lengthy dispute over the legality of publishing a thief’s photograph on a social network by the victim of the theft. However, the court did not deal with the details of the case, stating only that the…
Monitoring employees’ emails
The case involving a 38-year old engineer from Bucharest continues: the dispute between a Romanian employee who despite a ban used his employer’s equipment for private purposes during his working hours and a private company that monitored his…
EU finance ministers discuss new digital economy rules
An informal meeting of the EU’s finance ministers and central bank governors took place in Tallinn in September and addressed, among other things, taxation issues in the context of the digital economy. The ministers looked into new approaches to the…
Government outlines new possibilities of regulating sharing economy
The Office of the Government published its analysis of possible ways to regulate the sharing economy and digital platforms. It primarily targets the most widespread accommodation and transport services.
LES unconstitutional
In the last issue of Tax and Legal Update, we briefly informed on the proposed amendment to the Act on the Czech Chamber of Commerce introducing the Legal Electronic System – LES. Today, we will look into some of the system’s deficiencies.
Taxation of disproportionate profit share distributions
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors recently dealt with the taxation of profit distribution under the Corporations Act in situations where members of a limited liability company or…
A clear path towards interest on retained deductions
The taxpayer’s entitlement to interest on long-retained excess deductions has been repeatedly confirmed by the Supreme Administrative Court (SAC), despite the financial administration’s displeasure. The General Financial Directorate (GFD) finally…
Amendment to VAT Act clarifies VAT ledger statement requirements
The Chamber of Deputies of the Czech Republic passed an amendment to the VAT Act in response to the Constitutional Court’s ruling, according to which, within VAT ledger statements, the financial administration may not request from taxpayers data not…
New reporting duty for entities that are part of multinational groups
A long-awaited amendment to the Act on International Cooperation implementing a new information exchange duty, i.e. country-by-country reporting, into Czech legislation was published in the Collection of Laws on 19 September 2017.