Re-invoicing excluding VAT? Only when no ancillary supply is involved
The Supreme Administrative Court (SAC) recently agreed with the tax administrator that the re-invoicing of accident insurance is a supply ancillary to the lease of a motor vehicle and, consequently, should be liable to the same VAT regime as the…
GFD guideline on research and development
Case law of the Czech Supreme Administrative Court confirms that a flawless research and development project represents a necessary precondition for claiming a research and development deduction in a tax return. The General Financial Directorate …
SAC: Tax administrator’s authority to register taxpayers for VAT subject to time limit
In its decision 10 Afs 329/2016-55, the Supreme Administrative Court (SAC) confirmed that the tax administrator’s authority to register persons liable to tax as VAT payers by virtue of office is not time-unlimited, similarly as any other…
SAC: Tax deductibility of expenses requires providing evidence about real supplier
In its two recent decisions, the Supreme Administrative Court (SAC) again concluded that legal entities claiming tax deductible expenses must document and prove circumstances under which these expenses were incurred, as well as provide information…
“Perfect” documentation does not automatically guarantee deductibility for tax purposes
In its recent judgment (file no. 7 Afs 330/2016), the Supreme Administrative Court (SAC) again held that even an accounting document free of any formal deficiencies and containing all essential elements does not prove on its own that the declared…
Latest news - October 2017
Last month’s tax and legal news in a few sentences.
A clear path towards interest on retained deductions
The taxpayer’s entitlement to interest on long-retained excess deductions has been repeatedly confirmed by the Supreme Administrative Court (SAC), despite the financial administration’s displeasure. The General Financial Directorate (GFD) finally…
Privacy for thieves
The Constitutional Court finally closed a lengthy dispute over the legality of publishing a thief’s photograph on a social network by the victim of the theft. However, the court did not deal with the details of the case, stating only that the…
SAC on direct link between non-deductible expenses and taxable revenues
The Supreme Administrative Court (SAC) issued a ground-breaking ruling relating to problematic Section 24 (2)(zc) of the Income Tax Act effective until the end of 2014, giving the opportunity to reassess the treatment of non-deductible expenses with…
SAC: tax provisions for assets repairs have to be sufficiently supported with documentation
In its decision No. 9 Afs 149/2016-34, the Supreme Administrative Court (SAC) confirmed that where provisions are created for assets repairs, adequate documentation has to be available and the repairs have to be sufficiently concretised. It also…
Possible defence against prejudiced expert witnesses
The Supreme Administrative Court (SAC) previously ruled that if the tax administration doubts the nature of activities for claiming an allowance for research and development, it should obtain an expert’s opinion. In the court’s view, only an expert…
Constitutional Court puts a brake on the right to information
The right to information, protected by the Charter of Fundamental Rights and Freedoms and further elaborated on in the Act on Free Access to Information and some other laws, is one of the evergreens of administrative justice. The Supreme…