Case law
Active defence pays off in tax fraud investigations
The Supreme Administrative Court (SAC) has brought a new perspective on proving the taxpayer’s involvement in a transaction affected by tax fraud. While remaining consistent with its previous case law as to the distribution of the burden of proof,…
SAC on proving VAT exempt supplies to another EU member state
In its recent judgment, the Supreme Administrative Court (SAC) dealt yet again with the case where the VAT exemption of a cross-border supply of goods was challenged by a tax administrator. Apart from the specific circumstances of the case, the…
CJEU setting stricter rules for on-call time of workers
The Court of Justice of the EU (CJEU) dealt with a dispute between a Belgian firefighter and his employer regarding the employee’ entitlement for being on call (stand-by duty). The court held that that if the employee had to respond to the…
Users may be responsible for Facebook’s activity
The recent judgement of the Court of Justice of the EU (CJEU) will not please many administrators of ‘fan pages’ hosted on Facebook: in its ruling in case C 210/16 ULD vs. Wirtschaftsakademie, the CJEU concluded that the administrator is in the…
When does the super-gross salary concept apply to benefits from third persons?
The Regional Court in Hradec Králové has recently dealt with the income tax implications of employee benefits provided by third persons. The court’s decision affects the determination of employees’ super-gross wages.
Tax penalty with a prison sentence on top?
One of the topics frequently discussed by Czech judiciary and tax professionals is the concurrence of administrative and criminal sanctions. A crucial issue here is the relationship between a penalty imposed in tax proceedings, and a subsequently…
Burden of proof for shortages ascertained
In its judgment No. 1 Afs 327/2017, the Supreme Administrative Court (SAC) dealt with an additional assessment of value added tax on shortages recognised during stock takings. The judgement provides insight into how shortages are viewed by the Czech…
Substance-over-form rule not applicable to research and development allowances
In its judgement No. 3Afs 304/2016 – 37, the Supreme Administrative Court (SAC) confirmed once again that compliance with formal essentials stipulated by the Income Tax Act is a prerequisite for claiming research and development allowances. If…
Dependent agent permanent establishment
The Regional Court in České Budejovice held that if an agent’s activity forms a separate and essential part of a non-resident taxpayer’s activity, it gives rise to the taxpayer’s permanent establishment in the Czech Republic. The activity does not…
End of never-ending story on concurrence of offices?
Czech judiciary again dealt with the (un)acceptability of the concurrence of offices, i.e. whether members of a corporation’s statutory body may at the same time perform activities for the same company under an employment relationship. This time,…
CJEU again ruled on transport in chains of transactions
In its February decision (C-628/16), the Court of Justice of the European Union (CJEU) again dealt with how to attribute transport or dispatch to two successive intra-community supplies. According to the CJEU, transport may not be ascribed to the…
CJEU: deduction of VAT on input must be allowed upon assessment of additional VAT on…
Recently, the Court of Justice of the European Union (CJEU) dealt with two interesting and in principle similar cases that both involve the rectification of incorrectly declared supply in terms of VAT. Whereas national courts denied the customer’s…