Tax and legal news

The Supreme Administrative Court (the SAC) has issued a judgment concerning the švarc system and a disguised (de facto) employment service (i.e. job agency/headhunting service). According to the court, what is crucial for the assessment of the actual situation is how the employee himself understands his position - even if the services are invoiced on the basis of a work contract between companies.

Advocate General Juliane Kokott dealt with the question whether the general joint and several liability of the statutory body falls within the scope of the VAT Directive (on the grounds of the company's inability to pay its VAT debt). She also commented on whether national legislation can impose direct liability on a dishonest member of a managing board whose conduct leads to the company's inability to pay the tax properly.

On 21 June 2022, the government of the Czech Republic and the government of the state of Qatar signed the Agreement for the elimination of double taxation with respect to taxes on income and for the prevention of tax evasion and avoidance.

With respect to the conflict in Ukraine, an amendment to the Income Tax Act has been approved that introduces new possibilities in respect of tax relief regarding donations provided by tax payers to Ukraine.

The above-mentioned new government bill amending the Income Tax Act proposes support for owners of low-emission vehicles. The bill suggests reducing the amount of taxable income, which increases the tax base of employees who use company cars for private trips.

In the light of the dramatic increase in fuel prices this year, the Ministry of Finance has issued a general waiver to all entities regarding 2022 road tax deposits.