Tax & Legal Update
CJEU on hijabs in the work place
In March, the Court of Justice of the EU (CJEU) dealt with the controversial topic of wearing Muslim headscarves – hijabs – in the work place. It held that employers may ban employees from wearing visible religious symbols at work. The verdict,…
CJEU: in mergers, the burden of proof lies with tax administrators
In early March, the Court of Justice of the EU (CJEU) dealt with an interesting question in the Société Euro Park Service (C-14/16) case. The case involved a dispute whether a tax administrator’s prior approval was necessary to defer the taxation of…
Effective date of the amendment to the Insolvency Act approaching
The comprehensive amendment to the Insolvency Act published in the Collection of Laws under No. 64/2017 Coll. enters into effect on 1 July. One of its most important changes expands and specifies the definition of bankruptcy. The amendment also…
New data processing consent required under GDPR?
The new EU General Data Protection Regulation (GDPR) is knocking on our door. Although the new rules are only to be followed from May 2018, due to the complexity of implementation a number of companies have started to prepare for them already. In…
MF issues discussion paper on ATAD implementation
The Ministry of Finance released a discussion paper on the implementation of the EU Anti-Tax Avoidance Directive (ATAD) into Czech law. It mainly focuses on new interest deduction limitation rules, exit taxation, controlled foreign company rules and…
The moment of export from a VAT perspective
Last year’s amendment to the VAT Act changed the definition of a tax document upon the export of goods. A recent contribution submitted by the Chamber of Tax Advisors for discussion in the coordination committee with the GFD clarifies the moment at…
Penalties for VAT ledger statements: new waiver options
The General Financial Directorate (GFD) is expanding options to waive penalties for the failure to file VAT ledger statements, or for their late filing, amounting to CZK 10, 30 or 50 thousand. It will be possible to waive up to two penalties for…
SAC on VAT exemption
In tax inspections, tax offices increasingly focus on VAT fraud connected with the transit of goods. What to watch out for when delivering goods to another EU member state, and how not raise the tax authority’s suspicions? The recent Supreme…
Consideration for transfer of technical improvement – good news on the horizon?
In the autumn of 2014, the Supreme Administrative Court’s ruling, stating that the right to carry out tax depreciation of a technical improvement cannot be transferred between tenants, stirred the tax waters considerably. The case has now returned…
When is a corporation not criminally liable?
At the end of last year, the Supreme Court opined on the limits of corporate criminal liability. Case law in this field has been quite sporadic. In regards to last December’s amendment to the Corporate Criminal Liability Act, any ruling that…
How to keep R&D expense records separate
To claim a research and development deduction in a tax return, taxpayers have to correctly assess the activities, prepare a project documentation, and properly record related expenses, separately from other costs. But what exactly does such separate…