Case law
SAC: tax provisions for assets repairs have to be sufficiently supported with…
In its decision No. 9 Afs 149/2016-34, the Supreme Administrative Court (SAC) confirmed that where provisions are created for assets repairs, adequate documentation has to be available and the repairs have to be sufficiently concretised. It also…
Tax administrators obliged to continuously review conditions for securing tax
An order to secure tax (a securing order) issued by a tax administrator should not be permanent or irreversible. The taxpayers themselves may contribute to its end. At the same time, tax administrators have the duty to regularly review the…
Regional court says no to the concurrence of liability for VAT and denying the…
The tax administration has numerous tools to fight VAT fraud and evasion, including denying the entitlement to VAT deduction or instating customers’ liability for VAT not paid by their suppliers. And tax administrators do not hesitate to use these…
Lafata scores against tax authorities
The Supreme Administrative Court reversed a lower court’s decision on the taxation of the Czech football player David Lafata’s income. The SAC granted his arguments that a professional football career may be viewed as a trade. This hence should…
Possible defence against prejudiced expert witnesses
The Supreme Administrative Court (SAC) previously ruled that if the tax administration doubts the nature of activities for claiming an allowance for research and development, it should obtain an expert’s opinion. In the court’s view, only an expert…
SAC: VAT not a part of immovable property acquisition tax base
The Supreme Administrative Court (SAC) in its recent judgement surprisingly diverged from the explanatory report on the Senate’s Statutory Measure on the Tax on Acquisition of Immovable Property. According to the report, the agreed-upon price for…
SAC: Partial payment orders may not be issued
According to the Supreme Administrative Court, the Tax Procedure Rules do not allow the issuance of a payment order for only a portion of tax. This means that VAT payers from whom the tax administrators retain excess deductions sometimes amounting…
Misuse of company credit card ruled legitimate reason for terminating employment
The Supreme Court recently dealt with a case involving the controversial use of a business payment card. The employer believed that the employee had misused the card and immediately terminated the employment. The employee objected that he had not…
Liability for VAT in payments to foreign accounts contrary to EU law
A supply recipient’s liability for unpaid VAT if the payment for the supply is made by a transfer to a foreign account is contrary to EU law, according to a regional court’s recent decision (file No. 22 Af 102/2014).
Full damage compensation in car accidents
The Constitutional Court again ruled on compensation of damage in car accidents. After a series of rulings dealing with the amortisation of spare parts used to repair crashed cars, the court now looked into the issue of compensation for damage…
Meeting conditions for exempted delivery
Proving the entitlement for VAT exemption when delivering goods to another member state is becoming increasingly difficult due to the growing demands of the tax administrators. Taxpayers will thus surely be happy to hear of any ruling that may make…
Supreme Court: end of zero tolerance to alcohol at work
Although the Labour Code bans employees from entering the workplace under the influence of alcohol, the Supreme Court in its recent judgment stated that not every breach of this duty is automatically a justified reason for dismissal. According to…