Tax & Legal Update

SAC on beneficial ownership of royalties

A recent Supreme Administrative Court (SAC) judgment dealt with beneficial ownership in the context of licensing agreements. In its decision, the SAC emphasised that an entity who is unable to freely decide on the use of collected royalty payments…

24 News in Brief, March 2024

Last month’s tax and legal news in a few sentences.

Regulated gender ratio in companies

The Czech Republic must comply with obligations under EU law regarding the gender balance in the management of certain listed companies. The Minister for European Affairs proposes to stipulate the new obligations in an amendment to the Capital…

SAC on VAT exemption for intra-community supply

The Supreme Administrative Court (SAC) did not recognise the right to VAT exemption for a supply of goods to another EU member state, as there were doubts whether the goods had been supplied to a person registered for tax in another member state,…

Redefining relevant market in competition law

For the first time since 1997, the European Commission has adopted a new notice on the definition of the relevant market. The definition plays a crucial role in the assessment of cartels and mergers, and in other areas of competition law. The notice…

Details of 2025 amendment to VAT Act - Part I

The draft amendment to the Value Added Tax Act, currently in the external comment procedure, introduces extensive changes as it transposes EU directives and responds to CJEU rulings and practical experience. Below we present the first part of these…

Some OP TAC calls postponed

The Ministry of Industry and Trade has updated the schedule of calls to participate in the Operational Programme Technology and Applications for Competitiveness for 2024, postponing several calls also designed for large enterprises.

SAC on application of essential costs

Several recent administrative court decisions have dealt with the question in what circumstances it is necessary to consider essential costs even if the taxpayer has failed to fully prove them. The issue was therefore addressed by an extended…

Can penalties be waived where abuse of tax law has been involved?

Cases of abuse of law are nothing new in the tax area. Is it possible to successfully apply for waiver of at least part of the penalty resulting from the assessment of additional tax under these circumstances? Can the tax authority deny the waiver…

Ministry of Labour and Social Affairs plans further changes to employment of…

The Ministry of Labour and Social Affairs is planning stricter penalties for illegal work and disguised employment mediation. The absence of a prior (final and conclusive) penalty for these offences will now be a precondition for employing…