News

  • Act of Insolvency after January 1, 2012

    February 23, 2012

    As of January 1st, 2012 businessmen (individuals and legal entities) has a new duty to file for insolvency if market value of their assets is lower than the value of their payable and non payable liabilities even in cases when they are able to pay their liabilities continuously.

    Not only statutory body like executive director, board of directors or an individual-businessman but also management of business entity takes over the resposibility to file for insolvency (e.g. head of accounts department).

    Management is obliged to follow and evaluate market value of their assets, liabilities and other liabilities out of the balance sheet .

  • Specialized Tax Authority

    September 23, 2011

    From the January 1st, 2012 a new Tax Authority placed in Prague by Tax Administration will operate and administer chosen entities - i.e. banks, insurance companies, business legal entities with the turnover over 2 billion CZK and in legitimate cases based on an administrative decision also other individuals or legal entities. Further information about changes for chosen entities will be announced by Tax Administration in autumn this year.

  • More companies will report according to the International Financial Reporting Standards from 2011

    February 10, 2011

    From the beginning of 2011, also companies which don't issue securities are allowed to settle and compile their financial statements according to the International Financial Reporting Standards (IFRS). However, there is a prerequisite for usage of IFRS which determines that a Czech company is a part of consolidation unit, which is obliged to compile consolidated financial statements according to IFRS too. The decision about usage of IFRS for settlement and compilation of a financial statements as well as determination of accounting period from which the IFRS will be used is subject to approval at the company shareholder's general meeting.

  • Change in the tax administration

    October 28, 2010

    As of the 1st January 2011, Act N.280/2009 Sb., tax system is replacing current Act N. 337/1992 Sb. providing for administration of taxes and tax fees. The tax authority can issue a new decision on remission of tax attribution for reasons of lowered summum jus. According to the unexpired Act providing for administration of taxes and tax fees will be reviewed all requests for remission of tax attribution delivered until the end of 2010. The tax subjects can submit requests to the appropriate tax authority until the end of 2010 either if the tax and tax attribution were assessed or they can be assessed according to the results of the current tax control.

  • OECD approves the 2010 Transfer Pricing Guidelines

    September 20, 2010

    The OECD Council has approved the 2010 version of the Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations. Chapters I-III of the Transfer Pricing Guidelines were substantially revised as a result of the review of comparability and profit methods that was undertaken by the OECD, with input from non OECD economies. In addition, the 2010 version of the Transfer Pricing Guidelines contains a new Chapter IX on the transfer pricing aspects of business restructurings. Source: www.oecd.org

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