Tax & Legal Update
SAC on tax treatment of sale of unfinished real estate and related project
The Supreme Administrative Court (SAC) dealt with the tax deductibility of costs related to a development project upon the sale of unfinished real property. The tax administrator did not recognise most of the costs as tax relevant, and the Supreme…
Principles of tax administration: material truth
Honesty gets you the furthest, and lies don’t travel far. With a bit of exaggeration, it could seem that these sayings were an inspiration for the Tax Procedure Code, as it enshrines the principle of material truth. In this article, we explain what…
Demerger by separation: new type of business conversion for more efficient…
A major amendment to the Act on Conversions of Commercial Companies and Cooperatives (the Company Conversion Act) effective from 19 July 2024 has introduced a new type of conversion: the demerger by separation. This extends the range of companies’…
CJEU: supplies provided within VAT group not subject to tax
In case C 184/23 Finanzamt T, the CJEU dealt with a dispute between the German tax administration and a foundation governed by public law. In the same case, judgment C 269/20 had already been delivered, which dealt with a VAT group and the supplies…
Revolution in data management? New law promises breakthrough in access to public…
Will it be data and not the citizens that will circulate between authorities, as the government promised in its manifesto? In April, the Digital and Information Agency published a draft of a new law on data management and controlled access to data.…
Czech Republic no longer recognises Russian non-biometric passports
Due to the current geopolitical situation, the Czech Republic has decided not to recognise Russian travel documents that do not have biometric elements, effective from 3 July 2024. The purpose of the measure is mainly to increase security and…
Stricter sanctions to fight illegal work
Illegal work has recently come under the scrutiny of state inspection authorities and remains a central focus of their concern. For this reason, the Ministry of Labour and Social Affairs (MLSA) has proposed a further tightening of the rules…
Amendment to allow employees to self-schedule their working hours
The Ministry of Labour has set for itself the commendable goal to make labour-law regulation more flexible. To this end, it drafted several amendments to the Labour Code. One of the most significant changes to have already passed the legislative…
AI Act enters into force! Are you prepared?
On 2 August 2024, Regulation (EU) 2024/1689 of the European Parliament and of the Council laying down harmonised rules on artificial intelligence (AI Act) entered into force. The AI Act provides rules for the safe, responsible, and transparent use…
CBAM: end of default values
In its Implementing Regulation of August 2023, the European Commission in certain cases allowed the reporting of emissions for the purpose of filing Carbon Border Adjustment Mechanism (CBAM) reports based on calculations using published default…
Amendment to Income Tax Act introduces huge changes in personal income tax
Responding to the forthcoming new Accounting Act, the Ministry of Finance has published a draft amendment to the Income Tax Act. The proposed effective date of 1 January 2025 and other parts of the amendment may still change during the legislative…
Amendment to Labour Code resolves minimum wage increases and working time self…
Even before the Flexinovela amendment to the Labour Code becomes effective, changes are being proposed that should enshrine automatic minimum wage increases, abolish the guaranteed wage concept, resolve the plurality of trade unions, and allow for…