Tax & Legal Update
Stricter criteria for granting investment incentives
Following discussions regarding the future of investment incentives, the government plans to use this important investment tool to respond to the actual needs and priorities of the Czech Republic and focus on projects with a higher added value. In…
Generally applicable reverse charge mechanism
At its October session, the Economic and Financial Affairs Council (ECOFIN) approved a proposal allowing the EU member states to temporarily implement a generalised reverse charge mechanism until 2022.
Clearer rules for cross-border tax dispute resolution
In the autumn of 2017, the long-awaited EU directive on tax dispute resolution mechanisms in the European Union was passed. It aims to unify international cooperation in the resolution of tax disputes mainly arising from interpretation ambiguities…
Concurrence of offices, yet again
The concurrence of offices is an evergreen in corporate law. The present back-and-forth exchange of opinions between the Supreme Court and the Constitutional Court is certainly interesting. But will they finally arrive at a straightforward result?
SAC on proving intra-group services
In November 2017, the Regional court in České Budějovice ruled against a taxpayer in a dispute concerning the provision of services within a group. The court agreed with the tax administrator’s conclusions as to the lack of probative value of the…
Transfer price checks also in personal income tax inspections
Transfer prices between related parties remain a priority of tax administrators’ inspection activities. As much as the general public believes that this only concerns corporate entities and cross-border transactions, the recent Supreme…
SAC: filing additional tax return a preferred option to initiating tax inspection
Where the tax authority has reason to expect that additional tax will be assessed, taxpayers must be given a chance to correct their error by filing an additional tax return. Typically, these are cases where the conclusions of a single tax…
Not granting personal data subject’s request is an administrative decision
The Supreme Administrative Court (SAC) dealt with the admissibility of an action for protection against unlawful infringement by an administrative body in a case where a personal data subject was not satisfied with how their request under the…
SAC: Involvement in tax fraud must always be proved by tax administrator
The Supreme Administrative Court (SAC) dealt with a case in which the tax administrator denied a taxpayer’s entitlement to deduction of VAT on received taxable supplies, claiming that the taxpayer knew or should have known that they had been…
OECD’s discussion draft on the transfer pricing of financial transactions
The discussion draft provides guidance on the pricing of common intra-group financial transactions, such as loans, cash pools, hedging transactions and guarantees.