Tax & Legal Update
SAC: VAT not a part of immovable property acquisition tax base
The Supreme Administrative Court (SAC) in its recent judgement surprisingly diverged from the explanatory report on the Senate’s Statutory Measure on the Tax on Acquisition of Immovable Property. According to the report, the agreed-upon price for…
Possible defence against prejudiced expert witnesses
The Supreme Administrative Court (SAC) previously ruled that if the tax administration doubts the nature of activities for claiming an allowance for research and development, it should obtain an expert’s opinion. In the court’s view, only an expert…
Lafata scores against tax authorities
The Supreme Administrative Court reversed a lower court’s decision on the taxation of the Czech football player David Lafata’s income. The SAC granted his arguments that a professional football career may be viewed as a trade. This hence should…
Regional court says no to the concurrence of liability for VAT and denying the…
The tax administration has numerous tools to fight VAT fraud and evasion, including denying the entitlement to VAT deduction or instating customers’ liability for VAT not paid by their suppliers. And tax administrators do not hesitate to use these…
Tax administrators obliged to continuously review conditions for securing tax
An order to secure tax (a securing order) issued by a tax administrator should not be permanent or irreversible. The taxpayers themselves may contribute to its end. At the same time, tax administrators have the duty to regularly review the…
2017 OECD Transfer Pricing Guidelines
On 10 July 2017, the long awaited 2017 OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations (2017 Transfer Pricing Guidelines) were released. The new edition counting 612 pages replaces the previous Transfer Pricing…
Legal electronic system for entrepreneurs
The Chamber of Deputies is currently discussing a draft amendment to the Act on the Czech Chamber of Commerce. The amendment also introduces the Legal Electronic System (LES). Aiming to make the business environment in the Czech Republic more…
OECD releases draft update of Model Tax Convention
The OECD Committee on Fiscal Affairs has just released a draft update of the OECD Model Tax Convention. Neither the Committee on Fiscal Affairs nor the OECD Council have yet approved the update, but some significant parts have already been…
Constitutional Court puts a brake on the right to information
The right to information, protected by the Charter of Fundamental Rights and Freedoms and further elaborated on in the Act on Free Access to Information and some other laws, is one of the evergreens of administrative justice. The Supreme…
Stats and facts about the tax administration’s 2016 activities
The Czech financial administration has recently released a report on its activities for 2016. It states that tax revenues grew by nearly ten percent year-on-year, thanks to the tax administrators’ increased activities in the inspection area. At the…
Country-by-country reporting – changes on the horizon
At the last session of the Chamber of Deputies of the Czech Republic, further progress was achieved in passing the amendment to the Act on International Cooperation. The Act implements a new information exchange duty, i.e. country-by-country…
SAC: Partial payment orders may not be issued
According to the Supreme Administrative Court, the Tax Procedure Rules do not allow the issuance of a payment order for only a portion of tax. This means that VAT payers from whom the tax administrators retain excess deductions sometimes amounting…