New tools for the recovery of arrears
Starting this year, the tax authorities are not limited by local jurisdiction when recovering tax arrears. At the same time, from 1 July 2025, the customs administration can use a new power in the event of an u…
SAC: Companies are entitled to interest on unlawfully collected customs duties
In March, we informed you about the ruling of the Constitutional Court, which sided with a company in a dispute over interest on illegally collected customs duties against the customs office. The dispute thus …
SAC: In-kind wages may be exempt from employment income tax
The Supreme Administrative Court (the “SAC”) has recently expressed its opinion on the legal issue of the possibility of exempting in-kind wages from personal income tax in two judgements: No. 6 Afs 354/2023 an…
The SAC resolved a long-lasting uncertainty regarding the interest on withheld tax deductions
In its recent judgment, the Supreme Administrative Court (SAC) took up its preceding ground-breaking decisions regarding the tax deduction interest rate and responded to the probably last remaining question abo…
Are better days ahead for the R&D tax deduction checks?
Effective from 1 January 2024, Section 34c of the Income Taxes Act has been amended by adding a new provision stating that in case of doubts by the Tax Administrator, the content of the project documentation ca…
The Supreme Administrative Court has decided when interest on incorrectly assessed tax does not arise
In its July 2023 decision, the Supreme Administrative Court ("SAC") upheld the existing case law stating that a taxpayer is not entitled to interest on an incorrectly assessed tax if the taxpayer paid the tax b…
Abuse of VAT law for leases of immovable property: What are the court’s conclusions?
Recently, we have seen an increasing interest of the tax authorities in the abuse of law. The Municipal Court in Prague (Ref. No. 3 Af 20/2021-43) recently examined one such case of abuse of law in connection w…
New guidance on the waiver of tax penalties introduces the assessment of the factual aspects of the additional tax charge
The Tax Code allows for the waiver of penalties, default interest, interest on deferred amount and fine for late claims. Once the basic conditions, i.e. the formal requirements and a good tax morale, have been …
The government will debate the extraordinary profit tax
In the previous days, a draft law on income tax was to be discussed, which would implement the extraordinary profit tax (Windfall Tax) into law from 2023 (for a period of three years). It is an instrument that …
Tax administrator’s communication and its possible pitfalls
The most frequent and regular way of communication between the tax administrator and taxpayers is in written form, whether electronically through a data mailbox or in paper form by post. However, the tax admini…