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Latest news - July 2018

Last month’s tax and legal news in a few sentences.

  • At the end of May and at the beginning of June, two motions to amend the Act on the Regulation of Advertising were submitted at the Chamber of Deputies, primarily aiming to ban the advertising of consumer loans. Whereas an amendment filed by KDU-ČSL proposes only a ban on consumer loan advertising, an amendment submitted by communist deputies is against promotion of all banking and non-banking loans. A penalty of up to CZK 2 million could be levied for the violation of these bans.  
     
  • In June, German and French ministries of finance adopted a common position on the proposal for a directive establishing a common corporate tax base (the CCTB Directive). The material proposes a number of changes aiming to accelerate discussions about this proposal and to bring about rapid agreement on the adoption of a directive on the EU level.
     
  • A list of contractual states applying the Common Reporting Standard (CRS) for the reporting of information about accounts, which is the duty applicable to financial institutions under the Act on International Cooperation in the Field of Taxation, was published in the Minister of Finance’s Financial Bulletin No. 5/2018.
     
  • The EU’s General Data Protection Regulation (GDPR) has been in effect for more than one month. One of the main reasons businesses had been preparing for this regulation quite intensively is the sanctions that may be charged, amounting to up to EUR 20 000 000 or 4% of the global annual turnover of a business. The Czech Personal Data Protection Office has recently announced that it will proceed with forethought when imposing penalties, as their main goal will be to rectify unlawful situations rather than immediately charging penalties. If they have not yet done so, personal data controllers and processors should make use of this lenient approach and implement GDPR as soon as possible, as they still might do so without the risk of being severely penalised.