Tax & Legal Update
Interest on retained excess deductions yet again before Court of Justice of the…
The Court of Justice of the European Union confirmed yet again that tax administrators should refund excess deductions to taxpayers within a reasonable time. If they fail to do so, the taxpayer is entitled to late payment interest (default interest)…
SAC: tax provisions for assets repairs have to be sufficiently supported with…
In its decision No. 9 Afs 149/2016-34, the Supreme Administrative Court (SAC) confirmed that where provisions are created for assets repairs, adequate documentation has to be available and the repairs have to be sufficiently concretised. It also…
Less administration for entrepreneurs
The senate has passed an amendment to the Trade Licensing Act that brings some administrative simplifications. Among other things, in abandons the entrepreneurs’ duty to provide to the trade licensing authority certain data available from the Trade…
Private enforcement of competition law made easier
The new Act on Compensation of Damage in the Area of Competition has successfully passed through the legislative process. It should make it easier to claim civil damages for the infringement of competition laws through cartels or abuse of dominant…
Three changes to employee taxation
Tax exemption of employee benefits expanded. New deductible item for bone marrow donation. Further increase in minimum wage in 2018.
Public call for the energy sector’s THETA programme to be announced in autumn
In autumn, the Technology Agency of the Czech Republic will announce the first public call for participation in the THETA programme, aiming to support applied research, experimental development and innovation in the energy sector. The programme is…
SAC on direct link between non-deductible expenses and taxable revenues
The Supreme Administrative Court (SAC) issued a ground-breaking ruling relating to problematic Section 24 (2)(zc) of the Income Tax Act effective until the end of 2014, giving the opportunity to reassess the treatment of non-deductible expenses with…
Not only personal income tax under Supreme Audit Office’s scrutiny
From June 2016 to this spring, the Supreme Audit Office (SAO) examined personal income tax administration and its examination outcomes do not spare the financial administration from criticism. In its report, the SAO estimates how much the…
VAT Act amendment lets tax administrators cancel VAT group registrations earlier
The amendment to the VAT Act effective from 1 July 2017 accelerates the process of terminating VAT group registrations. Where the registration is terminated ex officio, the registration terminates at the moment the tax administrator’s decision…
Fast-growing number of unreliable payers
The unreliable payer concept has been in the VAT Act since 2013. According to the GFD, in combination with the taxable supply recipient’s liability for unpaid VAT, this concept should serve as an effective tool to fight VAT evasion, whereas the…