Tax & Legal Update
Do you know about switching?
Are you happy with the bank in which you have your account? If not, do not despair: changing or switching banks will become an easy matter from as early as March of this year. Owing to an amendment to the Act on Payment Services, implementing…
New non-profit sector bill proposed
A long-awaited draft Act on Publicly Beneficial Status, which aims to enhance the transparency and trustworthiness of non-profit organisations by recording their publicly beneficial status in a public register, has finally been prepared. Although…
Low-Carbon Technologies Programme: second call for applications
The Investment and Business Development Agency announced a second call for applications under the Low-Carbon Technologies Programme, aiming to support the competitiveness of businesses and the sustainability of the Czech economy through the…
Binding rulings now also on allocation of profits to permanent establishments
Thanks to the budget committee’s amending proposal, the above mentioned amendment to the Income Tax Act (Print No. 873) expands the applicability of binding rulings. These will now also apply to the method in which profits are allocated to a…
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…