Tax & Legal Update
Transfer pricing perspective on business model changes
The Supreme Administrative Court (SAC) examined whether the tax administrator had correctly set the reference price of services provided between related parties following a change in the business model, and sided with the taxpayer.
Heated flavoured tobacco not available from October
The European Union and the Czech Republic are following the global trend to reduce the consumption of tabaco in their population. From 23 October 2023, it will no longer be possible to sell flavoured heated tobacco products, so very popular among…
Ministry of Labour and Social Affairs refrains from changing ‘Svarc system’…
The Ministry of Labour and Social Affairs wanted to fundamentally change the definition of illegal work, to facilitate its prosecution: the long-term character of the relationship would no longer be decisive for assessing it as illegal. However,…
Changes in conditions for holding an office in a corporation
An amendment to the Corporations Act came into effect on 1 July, introducing partial changes to the conditions for exercising an office as members of statutory bodies of corporations. The law now contains a closed list of obstacles to holding such…
Fundamental changes in rail passenger rights
On 7 June 2023, the revised EU regulation on rail passenger rights and obligations entered into effect. The new rules will affect everyone, especially passengers with disabilities, and passengers transferring to another route or transporting…
SAC on received intra-group services
In judgment 10 Afs 93/2021–69, the Supreme Administrative Court (SAC) ruled on the tax deductibility of costs (expenses) incurred by a company for services provided by the group. In the tax administrator’s opinion, the company failed to support what…
CJEU on the VAT treatment of electricity supplies from charging stations
In its recent judgment, the Court of Justice of the European Union (CJEU) held that the charging of electric vehicles and the provision of related services constitute a complex transaction consisting of a supply of goods.
Obligatory digital billing starting next year?
If the EU directive titled VAT in the Digital Age (ViDA) passes, taxpayers will have to cope with the digital reporting requirement. Member states then may impose an electronic invoicing obligation effective 1 January 2024.
General corporate loyalty principle in practice
Courts often deal with the issue of due managerial care. Persons and entities are obliged to act as a proper manager when managing a company's financial affairs. Less often, higher courts also deal with the principle of general corporate loyalty.
What will the new whistleblowing law bring and why does it not protect anonymous…
The whistleblower protection bill has passed the senate and is now heading to the president. Its effective date is expected at the end of the summer. The bill implements the EU directive on the protection of persons who report breaches of law at the…
Czechia introducing deposit for PET bottles and cans
The Ministry of the Environment is preparing an amendment to the Packaging Act introducing a deposit-refund system for metal and PET drink containers. What will the system look like in the Czech Republic?