Case law
Supreme Court confirms strict rules for serving notice of termination
Under the Labour Code, employers must deliver documents by which an employment is terminated to their employees primarily in person, at the workplace, at their residence or wherever the employees can be found. Only of this is not possible may…
SAC on proving delivery to another member state and on abuse of right
The abuse of right concept has been recently quoted mainly in connection with the adoption of the tax package. According to the amended Tax Procedure Code that defines it, the abuse of right concept applies to transactions whose predominant purpose …
Where to pay VAT on professional training courses – CJEU rules on Swedish case
The CJEU’s judgement has again shuffled the cards as regards the place of taxation for professional training courses. Should the venue of a course be decisive?
Bank’s branch’s full entitlement to VAT deduction
In case no. C - 165/17 Morgan Stanley & Co International, the Court of Justice of the EU (CJEU) provided an opinion on how to view an entitlement to a deduction of VAT on supplies received by a bank’s branch. This involved a case when supplies were…
Guidance on determining beneficial ownership: part two
The Court of Justice of the EU issued judgments in a number of cases dealing with beneficial ownership for EU directive purposes. The cases at issue mostly involved the application of an exemption from withholding tax on dividend and interest…
Punishment in tax
In a recent judgement, the Supreme Administrative Court confirmed that a penalty for late filing of a tax return is by its nature a penal sanction. Therefore, when imposing the penalty, a later legal regulation shall be applied if more advantageous…
Ground-breaking judgement: vacation compensation to be included in R&D allowance
The Regional Court in Hradec Králové issued judgement No. 31 Af 23/2016-76, dealing with tax allowances for research and development (R&D allowance). The judgment is truly ground-breaking, as it rejects the standpoint so far taken by the tax…
Retaining undisputed portion of excess deduction held unconstitutional
Last week, the Constitutional Court issued a judgement reversing the Supreme Administrative Court’s negative standpoint to a partial refund of an undisputable portion of excess deductions. According to the Constitutional Court, retaining the…
SC: Threats to employer reason for immediate termination
“If I do not get the centre manager job, I will see to it that the employer cannot draw subsidies and goes bankrupt”, an employee threatened his superiors. When the employer found out, they immediately terminated his employment. The validity of this…
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…
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…
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%…