Case law
SAC: transfer of tax labilities by operation of law possible in spin-offs
Contrary to its previous case law, the Supreme Administrative Court agreed to the possibility of tax labilities being transferred by operation of law also in demergers by spin-off, when the company being demerged is not dissolved. The court cited a…
Regional court: tax exempt sale of shares financed by a tax exempt dividend is abuse…
The Regional Court in Brno recently dealt with the sale of shares by individuals – natural persons financed by a tax-exempt dividend payment, concluding that the case involved an abuse of right. The court upheld the additional assessment of 15%…
SAC: liability for unpaid VAT not to take precedence over denying an entitlement to…
The Supreme Administrative Court (SAC) in its recent judgement held that (customer’s) liability for VAT unpaid by the supplier does not universally take precedence over denying (the customer’s) entitlement to VAT deduction – which has undesirable…
Early termination penalty subject to VAT?
The Court of Justice of the EU (CJEU) in its judgement C-295/17 (MEO – Serviços de Comunicações e Multimédia SA) dealt with the question whether a fee received for early termination of a contract is subject to value added tax.
Regional Court opposed to tax administrator’s approach to R&D allowance
The Regional Court of Justice in Hradec Králové in judgment No. 52 Af 18/2016 dealt with a case where a tax administrator challenged a research and development (R&D) allowance claimed by a taxpayer. The court in particular opined on the moment of…
CJEU on transport: excise duty regime not relevant
The Court of Justice of the EU (CJEU) in its December judgement (C-414/17) regarding Czech company AREX CZ dealt yet again with the issue of allocating transport in a chain of transactions. This time, it concerned fuel subject to excise duty and its…
New case law on offsetting
Offsetting is widely used in the business sphere to settle debts. By offsetting, a creditor’s and a debtor’s mutual debts of the same kind (usually monetary) cease to exist. The Supreme Court has recently issued two decisions bringing several…
SAC: difference between receivable’s nominal amount and purchase price may be…
According to the recent Supreme Administrative Court judgement, the difference between the nominal value of a receivable and its purchase price upon its transfer may be viewed as a factoring consideration, which is subject to value added tax.
SAC: additional tax may be assessed even if tax inspection is unlawful
Less than three month ago, we informed you about recent case law in which the Supreme Administrative Court (SAC) confirmed that tax administrator had proceeded unlawfully by not giving the taxpayer the chance to correct their error by filing an…
Super-gross tax base for benefits from third parties – the case continues
In July 2018, the Regional Court in Hradec Králové confirmed the duty to apply the “super-gross tax base” also for benefits provided to employees by third parties. The issue was now dealt with by the Supreme Administrative Court, which did not…
Tax administrator must not assess evidence put forward with bias
If a taxpayer produces evidence in tax proceedings, a tax administrator must assess such evidence both separately and in combination. If they have doubts about the evidence, they may invite the taxpayer to submit further or different evidence. They…
SC on proportionality of penalty under non-compete clause in employment contract
The Supreme Court (SC) dealt with the case of an employee bound by a non-compete clause who terminated employment with one employer and the following month began employment with a competitor. The former employer demanded that the employee pay a…