Case law
SAC on tax deductibility of provisions for repairs of tangible assets
In its recent judgment, the Supreme Administrative Court dealt with the creation of provisions for repairs of tangible assets under the Reserves Act. The key issue was the (non-) fulfilment of the condition that provisions may only be created for…
CJEU Advocate General: transfer pricing and VAT treatment
In his opinion (C-726/23), Advocate General Jean Richard de la Tour stated that remuneration for intra-group services calculated using the transactional net margin method as recommended by the OECD should be regarded as consideration for services…
Disguised tax inspection: SAC on the point of time of its actual commencement
The initiation of a tax inspection does not always have to be connected with a formal notification by the tax administrator, as legislation assumes. In its recent judgment, the Supreme Administrative Court (SAC) noted that a tax inspection has…
CJEU: Assessment of conditions for dividend exemption on subsidiary’s part
The Court of Justice of the EU ruled in a dispute (C-228/24) between a Lithuanian company and the tax authorities regarding the application of the abuse of rights concept under Directive 2011/96/EU on the taxation of parent companies and…
SAC confirms right to interest on wrongly assessed customs duties
In its recent judgment, the Supreme Administrative Court (SAC) has reconsidered its existing case law and granted a taxpayer the right to interest on wrongly assessed customs duty. The SAC emphasised that this right is guaranteed by EU law and that…
SAC: tax deductibility of advertising and promotion costs
Companies must be able to prove that their advertising and promotion costs were actually incurred in connection with generating, securing and maintaining taxable income. This basic rule for the tax deductibility of costs has yet again been confirmed…
Verification of signature of share transfer agreement by attorney
The Supreme Court (SC) dealt with the question of the validity of an agreement on the transfer of shares in a limited liability company where the signature of the transferee was verified by an attorney who at the same time signed the share transfer…
Transfer pricing when processing raw materials: new case law
Recent case law provides a new perspective on the method of setting transfer prices in situations where a taxpayer formally owns raw materials but all risks associated with the ownership are borne by another party. The judgment may have implications…
Joint and several liability for supplies without tax documents in customer-supplier…
The Court of Justice of the European Union (CJEU) has dealt with the joint and several liability of individual entities in a chain of transactions in the event of tax evasion. The CJEU answered the question of whether it is right to hold companies…
Labour Inspectorate against disguised employment mediation
Inspection activities targeting disguised employment mediation have long been a priority for the Labour Inspectorate. Typical examples of this illegal outsourcing are situations where a company is short of employees and decides to subcontract…
SAC on proving tax deductibility of repair costs
The Supreme Administrative Court (SAC) ruled on the issue of proving the tax deductibility of costs for the overhaul of an evaporator. In its judgment No. 2 Afs 70/2024, the SAC confirmed that the burden of proof lies with the taxpayer who must…
Indirect shareholding expenses: burden of proof always on taxpayer
The Supreme Administrative Court (SAC) dismissed the cassation complaint of one of the best-known holding companies in the Czech Republic that had disagreed with the adjusted amount of indirect expenses for holding shares in its subsidiaries to be…