Case law
How to keep R&D expense records separate
To claim a research and development deduction in a tax return, taxpayers have to correctly assess the activities, prepare a project documentation, and properly record related expenses, separately from other costs. But what exactly does such separate…
When is a corporation not criminally liable?
At the end of last year, the Supreme Court opined on the limits of corporate criminal liability. Case law in this field has been quite sporadic. In regards to last December’s amendment to the Corporate Criminal Liability Act, any ruling that…
Consideration for transfer of technical improvement – good news on the horizon?
In the autumn of 2014, the Supreme Administrative Court’s ruling, stating that the right to carry out tax depreciation of a technical improvement cannot be transferred between tenants, stirred the tax waters considerably. The case has now returned…
SAC on VAT exemption
In tax inspections, tax offices increasingly focus on VAT fraud connected with the transit of goods. What to watch out for when delivering goods to another EU member state, and how not raise the tax authority’s suspicions? The recent Supreme…
Duty to call for additional tax returns not absolute
The Supreme Administrative Court (the SAC) recently had to decide under what circumstances the tax administrator is obligated to call upon taxpayers to file an additional tax return before commencing a tax inspection.
Good news for creditors and collection agencies
In December, the Court of Justice of the EU gave a special Christmas present to all creditors and collection agencies. In its decision, the court explained when legislation regulating the provision of consumer credits should (not) apply to…
What information may the tax authority ask from your bank?
How resistant is bank secrecy against a call made by the tax authority? What questions about your account must your bank answer? Will the tax administrator learn from your bank that you use internet banking and who has disposal rights to your…
The SAC: Are statutory representatives liable to VAT?
In its recent judgment (2 Afs 100/2016–29) the Supreme Administrative Court held that the performance of an office as statutory representative in a limited liability company meets the criteria of an independently performed economic activity and…
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…
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…
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…