Tax and legal news

The Ministry of Finance continues to deal with the problem of the “grey economy”, especially the record-keeping of cash sales. It would like to ensure more effective tax collecting without increasing the tax burden. Moreover, the ministry would like to have an overview of current real sales. The system should be simple, and it should use existing technologies.

Bohdana Pražská and Filip Dostál of KempHoogstad, attended a meeting of the European tax institution Law & Numbers in Budapest last week.

The Financial Administration of the Czech Republic announced that they will not use the provision which prohibits seniors from applying the basic tax relief to income tax for the tax period 2013. The decision is based on a legal analysis of finding no. I.ÚS 2340/2013 of the Constitutional Court.

In our September issue of KempHoogstad Tax News, we informed you about the most interesting changes concerning the draft amendments to the Income Tax Act and the Value Added Tax Act.

The bills currently being discussed at the ongoing September session of the Chamber of Deputies include the VAT rate amendment. The main intention of the government has been to introduce a third VAT rate of 10%, which would apply to books, medications, and infant formula. The 15% and 21% rates should be kept.

A new edition of The Mergers & Acquisitions Review with a contribution from Bohdana Pražská has been published.