Tax & Legal Update
Finance ministry on future of windfall tax
The Czech Ministry of Finance reports that the state's extraordinary revenues from tax on windfall profits and levies on surplus revenues and wealth gains have not yet covered its extraordinary expenses related to the energy crisis. Although not…
Top-up tax: postponed deadlines and other proposed changes
The Act on Top-Up Taxes has not been valid a full year yet, but a draft amendment is already underway. The Ministry of Finance has now published the draft amendment after having incorporated comments. The most important changes concern the deadlines…
Time factor and standard of proof in tax inspection
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the issue of proving the right to deduct VAT on supplies of assembly work and the amount of evidence that the tax administrator may require considering the time elapsed…
CJEU on rejecting application for VAT refund
The Court of Justice of the European Union (CJEU) has held that the one-month time limit for submitting additional information in the proceedings for a VAT refund is not a limitation period. If national legislation does not allow new evidence to be…
SAC on tax treatment of sale of unfinished real estate and related project
The Supreme Administrative Court (SAC) dealt with the tax deductibility of costs related to a development project upon the sale of unfinished real property. The tax administrator did not recognise most of the costs as tax relevant, and the Supreme…
Principles of tax administration: material truth
Honesty gets you the furthest, and lies don’t travel far. With a bit of exaggeration, it could seem that these sayings were an inspiration for the Tax Procedure Code, as it enshrines the principle of material truth. In this article, we explain what…
Demerger by separation: new type of business conversion for more efficient…
A major amendment to the Act on Conversions of Commercial Companies and Cooperatives (the Company Conversion Act) effective from 19 July 2024 has introduced a new type of conversion: the demerger by separation. This extends the range of companies’…
CJEU: supplies provided within VAT group not subject to tax
In case C 184/23 Finanzamt T, the CJEU dealt with a dispute between the German tax administration and a foundation governed by public law. In the same case, judgment C 269/20 had already been delivered, which dealt with a VAT group and the supplies…
Revolution in data management? New law promises breakthrough in access to public…
Will it be data and not the citizens that will circulate between authorities, as the government promised in its manifesto? In April, the Digital and Information Agency published a draft of a new law on data management and controlled access to data.…
Czech Republic no longer recognises Russian non-biometric passports
Due to the current geopolitical situation, the Czech Republic has decided not to recognise Russian travel documents that do not have biometric elements, effective from 3 July 2024. The purpose of the measure is mainly to increase security and…