Tax & Legal Update
Banks not liable to accept deposits?
Significant conceptual changes to the Act on Banks and the Act on Capital Market Undertakings are expected to enter into effect in mid-2021. The regulation of supervision over groups of investment companies (securities brokers) will be transferred…
Interest on retained excess deductions – SAC agrees with KPMG
The Supreme Administrative Court (SAC) issued a breaking decision concerning retained excess VAT deductions, confirming that interest on a tax deduction of 1% + repo rate in effect from 1 January 2015 to 30 June 2017 is in conflict with EU law. The…
COVID-19 and transfer pricing policy – comparability analysis
With the economic downturn brought about by the COVID-19 pandemic, companies face the challenge of determining whether they should modify their transfer pricing policies. The decision has to be made at a time when comparable data necessary for the…
When shall we report under DAC 6 for the first time?
The first-time reporting of cross-border arrangements, originally planned to occur already this summer, will be postponed, most likely to the beginning of the next year: the legislative process implementing DAC 6 has been delayed, and the amendment…
CJEU: supply recipient must correct a tax deduction even though the supplier did not…
The Court of Justice of the EU (CJEU) has answered the prejudicial questions concerning a Romanian company that corrected a previously claimed VAT deduction for just a part of the supplies received. In this respect, the CJEU held that national tax…
Practical experience with applications under COVID – Rent programme
On 26 June 2020, the Ministry of Industry and Trade (MIT) launched the COVID – Rent programme. Applications should be accepted until 30 September 2020. Persons carrying out retail or performing services may apply for the compensation of rent for…
Pitfalls of managing transfer prices by means of marketing services
The Municipal Court in Prague confirmed the tax administrator’s approach reclassifying marketing services contracted and provided to abroad to ‘consideration received from a third party’. In the court’s opinion, the services were rendered directly…
Labour-law earthquake to hit for the first time in June
The years of effort to adopt an extensive amendment to the Labour Code have finally borne fruit: the governmental bill has passed through the legislative process and was promulgated in the Collection of Laws under No. 285/2020, with the effective…
Compensation bonus for persons working under agreements to complete job / perform…
The government has approved the provision of compensation bonuses also to persons performing work outside employment relationship, i.e. those who have been working based on an agreement to complete a job or an agreement to perform work resulting in…
Modernisation of consumer rules
A new EU directive revises the consumer right rules that must now be transposed into the legislations of the individual member states. The duties of traders towards consumers have been extended, as have the sanctions for their violations.
How did the Labour Inspection Office sanction employers in 2019?
The State Labour Inspection Office (SLIO) has published its inspection report for 2019. What were the outcomes of its inspections focusing on agency employment, illegal employment, concealed employment mediation and employee monitoring?