SAC ruling: ‘mistakes can cost you’ also applies to excess deductions

The Supreme Administrative Court (SAC) continues the trend of defending taxpayers against unlawful or incorrect practices of tax administrators. In its recent judgement 1 Afs 28/2018, it awarded a taxpayer interest on the wrongful conduct of a tax…

When does the super-gross salary concept apply to benefits from third persons?

The Regional Court in Hradec Králové has recently dealt with the income tax implications of employee benefits provided by third persons. The court’s decision affects the determination of employees’ super-gross wages.

New rules of liability for unpaid VAT according to SAC

The Supreme Administrative Court has specified the conditions of a supply recipient’s liability for VAT unpaid by the supplier: a payment to a foreign account cannot automatically give rise to liability.

Exemption from withholding tax on interest and royalties may be applied retrospectively

The Supreme Administrative Court held that the exemption of interest or royalties from withholding tax may be applied retrospectively for up to two years from filing the application for exemption with the tax authority.

SAC sets limits to fighting VAT fraud

Where a supply has been affected by VAT fraud, the tax administration demands almost investigative checks of suppliers to maintain the entitlement for VAT deduction; and this may happen at any point in the chain. The Supreme Administrative Court …

Better times ahead for cross-border trading taxpayers?

The Supreme Administrative Court has recently stood up for a taxpayer who effected a supply of goods to another member state, i.e. a transaction exempt from VAT with entitlement to deduction. The crucial point of the dispute was the taxpayer’s good…

Delivery of goods or provision of services?

Late last year, the Supreme Administrative Court (SAC) ruled in case 3 Afs 96/2016, dealing with whether a transaction should be viewed as a delivery of goods or a provision of a service; this had an effect on the correct VAT treatment.

SAC: tax inspections can be initiated by any tax authority

The 2016 amendment to the Act on the Financial Administration gave tax authorities country-wide jurisdiction in two areas: the fact-finding activity in tax administration, and the scrutiny procedures by the tax authorities, including tax inspections.

Interest on interest according to SAC? Yes, sometimes

The Supreme Administrative Court (SAC) has recently dealt twice with the possibility of awarding a taxpayer interest on the interest that the tax administrator refused to award and pay for a long time. It is for sure good to know that this…

VAT not to be included in acquirer’s immovable property acquisition tax base

VAT will not be included in the immovable property acquisition tax base even if the person liable to this tax is the acquirer. Based on this, persons liable to immovable property acquisition tax may file additional tax returns and claim part of the…

SAC: VAT cannot be levied twice on the same transaction

The Supreme Administrative Court (SAC) granted many VAT payers’ Christmas wishes by its favourable ruling regarding the fight against tax fraud. In the FAU case, attracting considerable media attention, the court said no to the concurrence of…

SAC on international requests for cooperation and time limits for tax assessment

Effective 1 January 2014, pending international requests for cooperation extend the period for which a tax may be assessed by the tax administrator. The SAC has now dealt with the interpretation of the effect of this regulation in terms of time: Do…