Case law

Non-taxable costs to become taxable ones?

Tuesday, 12. September 2017 - 10:46
In July, the Supreme Administrative Court of the Czech Republic issued an important ruling (judgement 9 Afs 231/2016 – 50) regarding rather a problematic clause concerning the taxability of certain costs (Section 24 Article 2 zc of the Income Tax Act). The provision technically allows to perceive the costs which would be deemed non-taxable in...

The prohibition of unilateral appointment of an arbitrator also stands among business enterprises

Friday, 16. June 2017 - 16:43
The prohibition of unilateral appointment of an arbitrator also stands among business enterprises In a recent judgment (23 Cdo 1098/2016), the Supreme Court dealt with the extremely practical issue of where the freedom of contracting parties ends when negotiating an arbitration clause. According to the law, there are several alternative ways of...

Right to Claim Depreciations at their Full Value with Assets only Partially Used

Monday, 20. March 2017 - 12:24
Verdict of the Supreme Administrative Court of 25 May, 2016, no. 4 Afs 24/2016-37 The Income Tax Act does not specify the conditions of a direct connection of expenses incurred and income generated within the same taxable period. In the above case, the court dealt with a situation of a complainant (a physical person) owning and renting an...

Gratuitously is not always gratuitously (7 Afs 31/2016)

Wednesday, 29. June 2016 - 11:10
In its recent judgment, the Supreme Administrative Court (SAC) dealt with the transfer of property given by a sole shareholder to a company. The real estate transfer tax was not paid, because it only applies to transfers in return for payment, which might have seemed correct at first glance. The tax administrator, however, reclassified this...

Judgement of the Supreme Administrative Court of the Czech Republic of 15 March 2016, Ref. No. 2 Afs 153/2014 – 71

Friday, 10. June 2016 - 14:25
What is decisive to determine the property tax rate is not the purpose of use of the building specified in the building permit or, as the case may be, in the occupancy approval, but its actual use. If the legislator had intended to connect the tax rate with any formal act of a public authority (i.e. with the issuance of the above mentioned...

Proving the entitlement to VAT deduction and the risk of "carousel frauds"

Friday, 15. April 2016 - 11:33
Ruling of the Supreme Administrative Court of 22 October 2015, file no. 7 Afs 237/2015 - 33The tax proceedings are governed by the principle that the taxpayer is obliged to report the tax in a tax return (the "burden of tax return") and, at the same time, to prove the statements made on such tax return (the "burden of proof"). The above decision...

Legitimacy of the tax administrator to invite tax payers to file tax returns

Monday, 7. March 2016 - 11:04
Judgement of the Supreme Administrative Court of the Czech Republic of 19 March 2015, Ref. No. 8 Afs 142/2014 – 34The tax administrator is not entitled, at its discretion, to invite tax payers to file tax returns.First, it must obtain evidence indicating that a specific tax payer that the tax administrator intends to invite to file a tax return...

Nový výklad možnosti oprav DPH u pohledávek za dlužníky v insolvenci

Tuesday, 21. April 2015 - 12:06
Rozsudek Nejvyššího správního soudu ČR ze dne 10.12.2014, č.j. 9 Afs 170/2014 - 47Nejvyšší správní soud zcela nově vyložil sporné ustanovení týkající se možnosti oprav DPH na výstupu v případě pohledávek za dlužníky v insolvenci. Dle zavedené správní praxe Generálního finančního ředitelství a odborné literatury bylo možné opravit DPH u pohledávek...