Tax & Legal Update
New rules on state aid for research, development, and innovation
In October, the European Commission adopted its revised rules on state aid for research, development, and innovation, replacing the existing 2014 framework and aiming to simplify the provision of state aid to boost investment into science, research…
CJEU on determining place of supply for services provided within VAT chain fraud
According to the basic rule, the place of supply for granting emission allowances is the place of the service recipient. Involvement in tax fraud has no effect on this determination, ruled the CJEU in case C-641/21 Climate Corporation Emissions…
Levy on surplus market revenues of electricity producers
In November, an amendment to the Energy Act passed through the legislative process at record speed, introducing a levy on surplus market revenues for most electricity producers and implementing part of EU Council Regulation 2022/1854 of 6 October…
SAC on claiming tax loss from transfer pricing adjustments abroad
Transfer prices are at the heart of many disputes with tax administrators not just in the Czech Republic but also abroad, often dragging on over many years. If tax is additionally assessed for one of group companies abroad, is it at all possible to…
Defence strategies for tax proceedings with possum-playing tax administrator
A tax administrator should proceed without undue delays, keeping with the principle of promptness of proceedings and procedural efficiency. However, this is not always the case. Therefore, in the following article of our Tips and Tricks section, we…
CJEU on disclosure of beneficial owner information
In EU member states, the legal regulation of beneficial owners and their registration is based on the AML Directive. Under the directive, information on beneficial owners within the territory of member states should be accessible to any member of…
Disguised legal act in payment of dividend to beneficial owner
In its recent judgment, the Supreme Administrative Court (SAC) dealt with a profit distribution payment to a Cypriot company. After assessing the entire context of previous transactions, the SAC held that the actual status had been disguised and…
New call under TREND to support research and development
On 23 November 2022, the Technology Agency of the Czech Republic (TA CR) announced the 9th call under the TREND programme, sub-programme 2. Support is available for projects aimed at launching research and development activities by entities that…
Amendment brings greater protection for farmers and food producers
An important amendment to the Act on Significant Market Power has successfully passed the legislative process and will enter into effect on 1 January 2023. In addition to introducing a broad list of prohibited business practices, it will now apply…
DMA: feared by online platforms, bringing hope for users
Soon, the online world will undergo a radical transformation. As of 1 November 2022, the Digital Markets Regulation entered into force, which will mainly affect large companies doing business in the digital world – such as Apple, Google, or…
CJEU on awarding free-of-charge vouchers to employees
The provision of vouchers to employees free-of-charge does not always mean an obligation to pay output VAT on the transactions. The CJEU (C-607/20) drew attention to the possibility of employers providing them as part of their economic activity,…
Changes in mandatory establishment of databoxes
The mandatory establishment of data boxes for all natural persons will most likely be abolished. The legislative amendment introducing the mandatory establishment of data boxes from 1 January 2023, which is already valid but not yet in effect, will…