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…

SAC: vacation compensation to be included in R&D allowance

In recent judgement 1 Afs 429/2018, the Supreme Administrative Court (SAC) expressed its opinion on a widely discussed question: whether wage compensation paid to employees on vacation may be included in expenses claimed within a research and…

Financial administration’s employee bonuses for additionally assessed tax criticised by SAC

The Supreme Administrative Court (SAC) commented on the possible bias of tax officers who had assessed additional tax for errors concerning research and development allowances. Early in 2016, the financial administration issued rules on awarding…

Lessor loses VAT deduction case

The Supreme Administrative Court (SAC) expressed its opinion on claiming a reduced VAT deduction in a case involving air-conditioning repair in a building where premises were leased both with and without VAT. According to the court, as the link…

Expats’ income tax base to be ‘super-grossed’ by fictitious premium only once

The remuneration of expatriates working under an international lease of workers that is paid partly by their formal/legal employer abroad and partly by their economic employer in the Czech Republic shall be increased for the purposes of determining…