Case law
What are the limits to a statutory body member’s loyalty?
In its case law, the Supreme Court (SC) has devoted considerable attention to the concept of due managerial care. Loyalty is an important component of this standard of care. The general rule stipulates that an elected member of a body of a legal…
PDPO can no longer fine public authorities and entities
In March of the current year, the Supreme Administrative Court confirmed a fine of CZK 500 000 imposed on the Ministry of Internal Affairs by the Personal Data Protection Office (PDPO) for breaching its duty to properly secure personal data. …
VAT upon early termination of financial leases
Recent CJEU case law has confirmed that amounts charged upon the early termination of financial leases do not always have be viewed as supplies not subject to VAT. This applies even to payments previously defined in contracts as damage compensation,…
CJEU decision fundamentally changes concept of reference periods for determining…
The Court of Justice of the EU recently issued a judgment that will most likely affect most Czech (and other) employers. The decision fundamentally changes the approach to reference periods used for monitoring overtime work or unevenly distributed…
SAC: Czech VAT regulation contrary to EU directive
The Ministry of Finance is preparing an amendment to the provision regulating the tax exemption of exports. The amendment will remove the precondition that goods must have been released to a relevant customs regime. Nonetheless, remaining unclear is…
Time period for providing additional information to a tax refund application not a…
The Court of Justice of the EU (CJEU) ruled in the case of Sea Chefs Cruise Services GmbH (C-133/18) that the one-month period to provide additional information to an application for tax refunds is not a limitation (lapse) period. What does this…
Interest on retained excess deductions after 1 January 2015 – part one
The issue of compensation for unreasonably long examinations of excess deductions has again been raised with the Supreme Administrative Court. This time the court discussed the amount of interest for the period after 1 January 2015 when a 1%…
Court explains the treatment of tax (non-) deductible expenses before 2015
The Municipal Court in Prague recently (10Af 60/2018 - 46-53) dealt with the applicability of Section 24(2)(zc) of the Income Tax Act as amended effective 1 January 2015 to taxable periods before 2015.
Passengers entitled to compensation also for delays of flights operated by a non-EU…
Mid July 2019, the Court of Justice of the EU (CJEU) dealt with the issue of claiming compensation for a significant delay of a flight operated by a non-EU carrier. When two connecting flights are booked by a single reservation with an EU-based…
Supervisory board member a taxable person for VAT purposes
Last month, the Court of Justice of the European Union (CJEU) dealt with the question whether a member of a foundation’s supervisory board is a taxable person for VAT purposes. In the case in question, the supervisory board member did not act in…
General meeting’s consent to transfer or pledge part of a business establishment
The Supreme Court sided with a formal and material approach to the ‘part of a business establishment’ term, specifying when the general meeting’s consent is required to transfer or pledge a significant part of a business establishment.
Assessing agent’s dependence in the context of permanent establishment
The Supreme Administrative Court (SAC) has described the key defining features of a dependent agent for the purpose of assessing whether a permanent establishment of a foreign entity has started to exist in the Czech Republic. Among its conclusions…