Case law
Statutory representatives liable for a corporation's tax arrears?
In a recent judgment (10 Afs 4/2024-38 of 18 June 2024), the Supreme Administrative Court (SAC) dealt with a case in which the tax authority turned to the statutory representative of a corporation on the grounds of his liability. Although the Tax…
Amortisation of valuation differences arising on company transformations part of…
The Supreme Administrative Court (SAC) has issued a judgment that may mark a change in the understanding of valuation differences arising on company transformations. Can we expect that Czech administrative courts will take the economic reality into…
Supreme Administrative Court defends taxpayer’s acquisition structure
The Supreme Administrative Court rejected the tax administration's view that the purchase of a share in a corporation financed by a loan and the subsequent merger to transfer the loan to the newly acquired operating entity constituted an abuse of…
CJEU on fixed establishment for VAT purposes
In case C 533/22 SC Adient Ltd & Co. KG, the CJEU confirmed its earlier conclusions regarding the origination of a fixed establishment for VAT purposes. In the present case, as in cases C 232/22 Cabot Plastics and C 333/20 Berlin Chemie, the court…
SAC’s Grand Chamber clarifies formal requirements for power of attorney
The Grand Chamber of the Supreme Administrative Court has clarified certain aspects of granting a power of attorney for representation in proceedings before state authorities. The SAC pointed out that there are no stricter requirements for the…
CJEU: free-of-charge supply of heat subject to VAT
The Court of Justice of the EU (CJEU) has ruled that the supply of heat free of charge is subject to VAT whether or not the recipient uses it to carry out economic activities. To determine the taxable amount, the cost price must include both direct…
SAC on determining reference price
In assessing transfer prices, the Supreme Administrative Court (SAC) emphasised that it is necessary to distinguish between a hypothetical estimate supported by logical and rational reasoning and economic experience on the one hand, and a…
Interest on retained VAT deduction: SAC verdict closes another chapter
In its recent judgment, the Supreme Administrative Court (SAC) has ruled that the statutory rate of interest on retained VAT deductions for the 2017 to 2020 period was in line with EU law. This dashed the hopes of many taxpayers who following a…
SDEU: prepaid cards single-purpose vouchers for VAT purposes?
In its judgment, the Court of Justice of the European Union (CJEU) held that prepaid cards constitute single-purpose vouchers if the place of supply and the VAT due are known at the time of issue. The CJEU further concluded that transfers of multi…
SAC on definition of beneficial owner of royalties
In a recent judgment, the Supreme Administrative Court (SAC) confirmed the key criteria for determining a beneficial owner in the context of licensing agreements. The court indicated that a beneficial owner can be identified in the course of tax…
Estimated payables as seen by recent case law
The Supreme Administrative Court (SAC) has recently issued two judgments dealing with estimated payables and their effect on the income tax base. The court’s reasoning provides taxpayers with important general information on what to have ready for…
Importance of detailed documentation for claiming R&D allowance
In its recent decision, the Supreme Administrative Court (SAC) confirmed that detailed and structured documentation is essential for successfully claiming R&D allowances. The absence of clear documentation may lead the tax authority to deny the…