Tax & Legal Update
Transfer prices targeted by auditors
January is traditionally a month in which KPMG’s tax department becomes involved in the examination of the financial statements of its audit clients, as transfer pricing may be associated with significant tax risks. Our audit teams assess these…
Application of beneficial ownership and anti-abuse principles in the EU
Courts across the EU have been inspired by the so-called Danish judgements of the Court of Justice of the EU, and so some national courts’ decisions on the taxation of dividends and interest payments received by holdings have followed the beneficial…
VAT on fuel cards to be affected by CJEU case law
Fuel card transactions are operated all across the EU. Therefore, some new measures being implemented in just some of the member states might be problematic. Hence, most EU states are still reluctant to apply the Court of Justice of the EU’s…
Brexit from a Czech immigration law perspective
With the last day of January, the never-ending story of Brexit finally ended. The law implementing the withdrawal agreement was passed by the Parliament of the United Kingdom of Great Britain and Northern Ireland early this year and signed by Queen…
Government (not) approving investment incentives
Three applicants for investment incentives were denied financial support to acquire fixed assets by the government. Applications for the support of strategic investment projects were submitted by investors under the previous legislative regime. Aid…
News in cross-border business conversions – demerger by separation
Demergers as a form of business conversion quite common in the Czech context and a useful tool to manage risks and tax aspects of transactions, have finally been harmonised on the EU level. The amendment to the respective directive introduces new…
Quick fixes: GFD information and amendment to EC explanatory notes
The Czech amendment to the VAT Act implementing quick fixes is still waiting for its second reading in the Chamber of Deputies. At the end of January, the General Financial Directorate disclosed information confirming the option of invoking the EU…
Surprising SAC judgment on taxation of income from sale of securities by individuals
The Supreme Administrative Court (SAC) opined on how individuals should proceed when determining the tax base for the sale of securities in foreign currencies (2 Afs. 4/2019 -38). The court held that the Income Tax Act gives taxpayers the option to…
Not keeping track of the other statutory representative? You are jointly liable for…
The Supreme Court (SC) is sending a warning to statutory representatives in limited liability companies: if you do not monitor your colleagues, you are in breach of the fiduciary duty / due managerial care, therefore co-liable for damage that would…
SC on breach of work duties by bank employee
The Supreme Court (SC) confirmed the validity of an immediate termination of employment of a bank employee working as a cashier. Entirely in line with its previous case law, it confirmed that duty breaches by bank employees must be viewed more…
SAC: vacation compensation to be included in R&D allowance
In recent judgement 1 Afs 429/2018, the Supreme Administrative Court (SAC) expressed its opinion on a widely discussed question: whether wage compensation paid to employees on vacation may be included in expenses claimed within a research and…