Tax & Legal Update
Practical implications of the Supreme Court’s decision on determining the scope of…
Corporate law has been shaken up by Supreme Court Decision No. 27 Cdo 3549/2020 on the nullity of a corporation’s founding acts stipulating “production, trade and services not specified in Appendices 1 to 3 of the Trade Licensing Act” as its scope…
Limits to shareholder agreement validity regarding board member instructions
In Judgment No. 27 Cdo 1873/2019-336, the Supreme Court (SC) dealt with the validity of clauses in shareholder agreements, making a significant contribution to the abundant case law concerning the boundaries between business and strategic management.
Constitutional Court more flexible on non-compete clauses in employment contracts
In May, the Constitutional Court dealt with the possibility of employers to withdraw from non-compete clauses. This court has a more liberal view of the matter than the Supreme Court which believes that an employer's withdrawal without giving a…
Companies to disclose income tax payment information
The European Commission has published a draft directive on the mandatory disclosure of information on income tax payments in individual member states and non-cooperative jurisdictions (public country-by-country reporting). The duty will apply to…
Beware of new standard contractual clauses when transferring personal data outside…
The European Commission has adopted two implementing regulations with significant impact on personal data processing. Effective from 27 June 2021, it is possible to use new standard contractual clauses for transferring personal data from the EU/EEA…
Registration of beneficial owners’ first month
The Act on the Registration of Beneficial Owners, a ground-breaking legal regulation, entered into effect on 1 June 2021. Since this date, the registry of beneficial owners has been available to the public and allows individuals to obtain a partial…
Amendment to Foreigners’ Residence Act not passed by Senate
In mid-June, the Chamber of Deputies approved the long-awaited bill to amend the Foreigners’ Residence Act and passed it on to the Senate. On 1 July, the Senate rejected the amendment. Below, we present the changes that the amendment was intended to…
Labour Inspection Office focuses on illegal employment and unlawful labour hire…
Illegal work and concealed agency employment are offences associated with the highest sanctions in the labour-law sphere, as the Labour Inspection Office may impose fines of up to CZK 10 million on employers. The office has been focusing on…
Minimising penalties - how to claim a waiver?
Depending on the results of a tax inspection, a penalty of 20% of the additionally assessed tax or 1% of the amount by which a tax loss was reduced may become due. This amount is fixed, and cannot be reduced by tax administrators on their own.…
Second call under COVID – Uncovered Costs programme
The Ministry of Industry and Trade has prepared a second call to participate in the COVID – Uncovered Costs programme, aiming to compensate for fixed costs incurred by entrepreneurs reporting significant decreases in sales compared with the period…
Amendment to VAT Act 2021: EU directive’s direct effect applicable in majority of e…
An e-commerce amendment to the EU VAT Directive has been in effect since 1 July 2021. Unfortunately, the Czech Republic has not yet implemented it: the relevant amendment to the Czech VAT Act is still awaiting approval by the Senate. In its recently…
Detailed home office regulation still not in sight (II): employee monitoring
In this article, we deal with the pitfalls that the monitoring of employees working from home may pose for employers. In this case, the employer’s right to know whether employees are performing the assigned work during working hours and are not…