Case law
The limits of formality in bank guarantees
The recodification of private law in effect from 1 January 2014 was meant to bring a reduced level of formality in legal relations. Even this, however, has its limits, as shown by a recent decision of the Supreme Court. Discussing a case involving a…
Consideration paid after withdrawing from a contract for work
The Supreme Administrative Court (SAC) ruled (7 Afs 124/2016 – 35) on the VAT treatment of an amount that a customer paid to a contractor after withdrawing from a contract for work. The core of the dispute was whether the amount was a consideration…
Interest on retained excess deductions reconfirmed
It has been two years since the Supreme Administrative Court issued a breakthrough decision in the Kordárna case, confirming that the tax authority must pay interest on retained excess deductions to the taxpayer. Despite the court’s decision, tax…
Contracting several types of work may backfire on employers
The Labour Code gives employers several tools to make the relationships with their employees more flexible. The possibility of contracting more than one type of work in a single employment contract is one of them. In particular, this is practical…
Tax authority’s duty to produce evidence
The Supreme Administrative Court’s recent judgment concerning the entitlement to VAT deduction reminds us that not only the taxpayer must prove facts during tax proceedings but also the tax authority. The tax administration’s attempt to shift the…
SAC: toll manufacturing should not result in loss
The Supreme Administrative Court recently dealt with yet another transfer-pricing case. The dispute involved the entitlement of a toll manufacturer to report losses due to unfavourable developments in the target market.
Incorrect APR in contracts: a costly error
The Supreme Court recently ruled on the issue of an incorrectly calculated annual percentage rate of expense (APR) in a consumer credit contract: if the APR is stated in the contract in an incorrect amount, this constitutes a breach of the…
SAC: To err is human even for accountants
The Supreme Administrative Court has finally and conclusively clarified the issue of applying the accrual principle to the taxation of accounting revenues by rejecting the retrospective current period taxation of revenues forgotten for many years.…
SAC: Tax administrators have to obtain a key witness statement
Has the tax administrator challenged the delivery of supplies or services on the grounds of your supplier being uncontactable? The Supreme Administrative Court in its recent judgment confirmed that the tax authority has to make all efforts and use…
Right to deduct VAT without meeting the required essentials of a tax document
In September, the Court of Justice of the EU (CJEU) ruled on case C-518/14 Senatex GmbH. In the case, the tax administrator challenged the entitlement to VAT deduction based on tax documents that did not contain the tax identification number (VAT No…
Concurrence of offices before the Constitutional Court
Even though in its new judgement of late September the Constitutional Court opined on the concurrence of the offices of chair of the board of directors and managing director, the ruling did not bring the long-awaited clarification of the issue. The…