Tax & Legal Update
Women on Boards: quotas to increase gender balance in corporations
After almost a decade of debate on the EU platform, a provisional political agreement has been reached on a proposal for a directive to promote a more balanced gender representation on corporate boards.
Months of uncertainty end: SC unifies interpretation of ‘unseizable amount’
Early this year, legislators quite exceptionally increased the normative monthly housing costs for 2022. These are usually updated annually to correspond to housing prices; for 2022 however, they were increased for the second time in response to…
VAT upon incorrect classification of intra-community supplies in chain transactions
In Polish case C-696/20 B., the CJEU ruled on whether a VAT payer involved in a chain transaction may be required to pay VAT on both the supply and the acquisition of goods. In its opinion, the CJEU recalled that the purpose of Article 41 of the VAT…
Promotion of corporate circular economy solutions
On 20 July 2022, the Ministry of Industry and Trade announced the first call for support for the circular economy under the National Recovery Plan. The programme is designed to accelerate the transition to a circular economy.
Controversial issues of claiming R&D allowance
On 22 June 2022, the Supreme Administrative Court (SAC) issued an interesting judgment dealing with the application of a research and development allowance. The SAC commented on two controversial issues: the concurrence of receiving a subsidy and…
When are statutory representatives liable for their company’s debts?
At the end of June, the Supreme Court (SC) issued a judgment dealing with the conditions of the liability of statutory representatives of a limited liability company for the company's debts. The court also commented on the possibility to recover…
Czech Labour Code not applicable to drivers in transit from other EU member states
The amendment to the Road Transport Act brings many changes: the law newly regulates the posting of drivers from other EU member states, and these rules significantly differ from the general regulation of the posting of workers under the Czech…
New EU directive to bring more transparency and equal pay
The European Commission has proposed new rights and obligations for workers and employers in the public and private sectors to strengthen the application of the principle of equal pay for men and women for equal work or work of equal value. It will…
Amendment to Lex Ukraine tightens conditions for temporary protection
Already during the adoption of the original wording of Lex Ukraine it became obvious that an amendment would soon be necessary. This amendment has been published three months after the original law's effective date and the changes it contains will…
Default interest: how it arises and how to reduce it
At the end of June, the Czech National Bank raised the repo rate again, this time to 7% p.a. This significantly affects the amount of interest under the Tax Procedure Code. From 1 July 2022, default interest will be calculated at a rate of 15% p.a.…
Statutory body liable for unpaid VAT?
Advocate General Juliane Kokott has recently dealt with whether the general joint and several liability of a statutory body falls within the scope of the VAT Directive (due to a company's inability to pay its VAT debt). She also commented on whether…