Case law
CJEU: German withholding tax on dividends paid to pension funds contrary to EU law
The Court of Justice of the EU (CJEU) issued a ground-breaking judgment concerning German withholding tax on dividends paid to foreign pension funds. According to the court, the withholding tax restricts the free movement of capital and is therefore…
Breaches of corporate representation rules and their consequences
In practice we often see that according to the entry in the Commercial Register, at least two statutory representatives should act jointly on behalf of a company, while in reality, contracts are signed by just one of them. Is a contract executed in…
SAC: tax-exempt sale of shares covered by tax-exempt dividend payment an abuse of…
In a November judgement, the Supreme Administrative Court (SAC) confirmed that a transaction consisting of a tax-exempt sale of shares with the subsequent payment of the purchase price using a tax-exempt dividend had no economic grounds other than…
Purchased IT services from a transfer pricing perspective
In a transfer pricing case, the Supreme Administrative Court (SAC) opined on the role of comparative analysis in evidentiary proceedings. The court, among other things, accepted the technique of assessing the adequacy of costs by comparing the total…
Data leaks could cost you dearly
Last year, one of the historically highest penalties for breaches of personal data protection, CZK 1.5 million, was imposed on a well-known e-shop that had failed to protect its customers’ personal data including passwords to their user accounts. …
Unauthorised download of corporate data on a flash disc a particularly gross breach…
The Supreme Court sided with an employer who had immediately terminated the employment of an employee who without authorisation had downloaded 2.2 GB of work-related data on his flash disc. This is good news for all employers, though it must be…
Recent CJEU case law on personal data protection
The Court of Justice of the EU (CJEU) has issued several judgements concerning personal data protection. In several aspects, some of them diverge from the current approach of the Office of Personal Data Protection and from previous CJEU case law.
Time limit for assessing tax in the context of international requests for information
International requests for information affect the time limit for assessing tax. For time limits that started before 2014, this only applies to some taxes. The Supreme Administrative Court’s (SAC) case law deduced that there is a fundamental…
Expats’ income tax base to be ‘super-grossed’ by fictitious premium only once
The remuneration of expatriates working under an international lease of workers that is paid partly by their formal/legal employer abroad and partly by their economic employer in the Czech Republic shall be increased for the purposes of determining…
Lessor loses VAT deduction case
The Supreme Administrative Court (SAC) expressed its opinion on claiming a reduced VAT deduction in a case involving air-conditioning repair in a building where premises were leased both with and without VAT. According to the court, as the link…
VAT on sale of land with buildings intended for demolition
Recently, the Court of Justice of the EU yet again dealt with the VAT treatment of a supply of land with a building to be demolished to allow for new construction. The judgement in the Herning case (C ‑ 71/18 KPC) reached conclusions different from…
Sex a work-related accident? So far, only in France
The mass media are currently dealing with a French court’s ruling that the death of an employee during sex on a business trip had been a work-related accident. The employer´s liability was not diminished even by the fact that it happened late at…