Tax & Legal Update
Long awaited amendment to the Corporations Act
Soon, we will mark the third anniversary of the Act on Corporations and Cooperatives (Corporations Act) coming into effect. Since the beginning, its application has been wrought with difficulties due to its inaccuracies and deficiencies. An…
A new IFRS16 Leases standard
The International Accounting Standards Board (IASB) issued a new IFRS16 Leases standard, introducing considerable changes in the method of accounting for leased assets. The new standard will affect a large number of business entities. Even though…
Corporate criminal liability after the amendment
All corporations should take note: on 1 December 2016, the awaited amendment to the Corporate Criminal Liability Act entered into effect. A number of significant changes should not escape the attention of any corporate entity – whether a…
How to correctly treat research and development?
A recent decision of the Supreme Administrative Court regarding a research and development expenditure deduction again emphasised the importance of expert opinions in cases of doubt. During inspections the tax authority must take into account the…
Ways to quicker excess VAT deduction refunds
Excess VAT deductions retained by tax administrators cause cash-flow problems to a large number of corporations. When claiming refunds of excess deductions amounting to millions of Czech crowns, taxpayers often have to wait a long time for the…
Top six tax news items for employers and employees in 2017
Higher tax reliefs relating to both employer and employee contributions to employees’ supplementary pension insurance and life assurance schemes are already a given. Another increase in tax credits for dependent children is yet to be approved. Below…
Tax authority’s duty to produce evidence
The Supreme Administrative Court’s recent judgment concerning the entitlement to VAT deduction reminds us that not only the taxpayer must prove facts during tax proceedings but also the tax authority. The tax administration’s attempt to shift the…
SAC: toll manufacturing should not result in loss
The Supreme Administrative Court recently dealt with yet another transfer-pricing case. The dispute involved the entitlement of a toll manufacturer to report losses due to unfavourable developments in the target market.
Incorrect APR in contracts: a costly error
The Supreme Court recently ruled on the issue of an incorrectly calculated annual percentage rate of expense (APR) in a consumer credit contract: if the APR is stated in the contract in an incorrect amount, this constitutes a breach of the…
Ireland to appeal against the EC’s Apple ruling
In September, the European Commission ruled that Ireland had granted an undue tax advantage of EUR 13 billion to Apple, which it now has to recover from the company. In early October, the Irish finance minister prepared an appeal against the EC’s…
G20/OECD revise their programmes to facilitate dispute resolution between tax…
In October, the OECD released key documents that form the basis of the Mutual Agreement Procedure (MAP) peer review and monitoring process under Action 14 of the BEPS Action Plan.
With a lease of business premises you may be taking over the previous tenant’s…
The Supreme Court recently dealt with two similar cases – hospitality entrepreneurs started to operate in leased premises whose former tenants had carried out similar business activities. The new tenants were up for a most unpleasant surprise:…