SAC: new judgments on substantive and temporal connection
In recent months, the Supreme Administrative Court (SAC) has issued several noteworthy rulings, all of which underline the importance of establishing a clear substantive and temporal connection between claimed expenses and the relevant taxable…
SAC on taxation of biogas in biogas stations
The Supreme Administrative Court (SAC) heard a dispute over whether biogas produced and consumed in a biogas station should be subject to gas tax. The SAC ruled in the affirmative
SAC on investments made based on parent company’s decision
The Supreme Administrative Court (SAC) has ruled on a case in which a company with a limited functional and risk profile suffered a loss due to a change in its production portfolio. The SAC confirmed the tax administrator's conclusions that the…
SAC’s strict view on ‘Svarc’ system in Rohlik.cz case
The Supreme Administrative Court (SAC) has ruled that the couriers of online supermarket Rohlik.cz had been illegally working under the ‘Svarc’ system. It thus confirmed the decision of the lower courts, and the company must pay a fine of CZK 2.5…
KPMG’s Tax and Legal Forum: Karel Šimka’s comments on SAC case law re ‘Svarc’ system and transfer pricing
The participants in the recent Tax and Legal Forum were given a behind-the-scenes look at the decision-making and functioning of the Supreme Administrative Court (SAC) by its president, Karel Šimka. We bring you part of the interview with him…
SAC on conditions for depreciation of technical improvements to real estate
The Supreme Administrative Court (SAC) has addressed under what conditions building alterations to real estate can be considered technical improvements eligible for tax-deductible depreciation. The court concluded that depreciation can only be…
Burden of proof when changing valuation of internally produced inventories
A recent ruling by the Supreme Administrative Court (SAC) dealt with proving a change in an accounting method regarding valuation of internally produced inventories, and its impact on the tax base. The ruling provides important conclusions for…
SAC rules on right to deduct VAT on fixed service fee
According to the Supreme Administrative Court (SAC), it is possible to claim a VAT deduction also for received services that were invoiced at a fixed monthly fee. The fact that the fee was agreed in this manner is not a fundamental obstacle to…