SAC: Justifiable grounds for waiving penalties broader in practice than specified in GFD guidance
In its recent judgment, the Supreme Administrative Court (SAC) held that, when interpreting justifiable grounds for waiving penalties for the failure to report exempt income, administrative bodies must examine the specific circumstances of each…
SAC: Substantiating the performance of R&D activities is essential to claim an R&D allowance
According to the Supreme Administrative Court (SAC), when proving the development activity for the purposes of claiming an R&D allowance, it must be clear from the evidence how existing knowledge or skills were systematically applied and tested to…
SAC on deadline for correcting the VAT amount and on appealing against implicit tax assessments
In a recent judgment, the Supreme Administrative Court (SAC) held that it is possible to correct the VAT amount within three years of the end of the taxable period in which the tax liability arose, whereas it is not possible to appeal against…
Landmark case-law: softer penalties for transfer prices incorrectly set by companies receiving investment incentives
The Supreme Administrative Court (SAC) has issued a ground-breaking judgment for companies drawing investment incentives under older schemes. The court confirmed that the failure to meet the condition not to increase the tax base for calculating tax…
Interest on retained excess deductions – SAC agrees with KPMG
The Supreme Administrative Court (SAC) issued a breaking decision concerning retained excess VAT deductions, confirming that interest on a tax deduction of 1% + repo rate in effect from 1 January 2015 to 30 June 2017 is in conflict with EU law. The…
SAC: Special regulation of period for assessing tax overrides general regulation
The Supreme Administrative Court dealt with the relationship between the general regulation of the period for assessing tax under the Tax Procedure Code and the special regulation of the period under the Income Tax Act in respect of the commencement…
SAC: chaining of tax losses inadmissible
The Supreme Administrative Court (SAC) has dealt with whether it is lawful to repeatedly extend the deadline for assessing tax, which in the event of repeatedly incurred losses, might never end. The SAC held (8 Afs 58/2019-48) that such a ‘chaining’…
Who is liable to pay VAT upon imports – the declarant, or the goods‘ owner?
The Supreme Administrative Court (SAC) held that the customs declarant, i.e. the ‘regime holder’ is liable to pay tax upon the import of goods from a non-EU country. In the court’s opinion, by lodging the customs declaration, such an entity…
SAC: proof of tax fraud not sufficient to deny entitlement to VAT deduction
Yet again, the Supreme Administrative Court (SAC) has dealt with a VAT fraud issue, in particular debating under what circumstances it may be concluded that a taxable supply recipient was or should and could have been aware of their involvement in…
Another Czech case before CJEU: is there entitlement to VAT deduction if the supply provider is unknown?
The Supreme Administrative Court (SAC) referred two prejudicial questions to the Court of Justice of the EU (CJEU) concerning entitlements to VAT deductions. In the case in question, the taxable supply recipient failed to support who had provided…
SAC rules against double taxation upon assignment of contractual sanctions
Regarding the assignment of contractual sanctions, the Supreme Administrative Court (SAC) determined what amounts should increase the tax base. According to the SAC, the tax base shall only be increased by the actual income from the assigned…
SAC opines on frequent tax inspection targets
In its recent judgment (7Afs 472/2018) the Supreme Administrative Court (SAC) confirmed the conclusions of a tax administrator and the Regional Court of Justice in Ústí nad Labem. The SAC opined on supporting the tax deductibility of advisory and…