Judicature by the Constitutional Court Applicable to Malice in Law
The Constitutional Court ruled that although tax law did not use the term “malice in law”, this did not mean that malice in law or circumvention of law did not occur.
The case in question involved a family that established an association to support and develop sport, cultural and artistic activities of its members, better their education and protect the environment and animals. However, the association in fact funded common needs and interests of its members instead; no other use of funds was proven.
The court considered the following situation to constitute malice in law: the only members of the association were relatives who covered otherwise non-tax costs for their own needs via the association while such costs are not generally tax deductible. Therefore, the funds provided to the association could not have been deemed to constitute a “tax-deductible donation” pursuant to Section 15, subsection 8 of the Income Tax Act.
Other articles
KŠB Assisted with the Refinancing of the BigBoard Group, a leading player in the premium outdoor advertising market
Our team provided legal advice to BigBoard Praha, a leading player in the premium outdoor advertising market in the Czech Republic, in connection with its refinancing. Founded in 1993, the BigBoard Group is the largest provider of premium outdoor advertising in the Czech Republic, with an approximately 70% market share and annual turnover of around CZK 2 billion. Its advertising media cover key locations across the country, including the Prague metro and major transport hubs.
KŠB Assisted Sandberg Capital with a Majority Investment in HotelTime Solutions
The KŠB team provided legal advice to the investment group Sandberg Capital on the completion of a majority investment in HotelTime Solutions, one of the leading providers of cloud-based software for hotel operations management.
KŠB assisted Seyfor with the extension of its financing provided by Raiffeisenbank, Tatra banka and, newly, Slovenská sporiteľňa.
The KŠB team provided legal advice to its long-standing client Seyfor in connection with the continuation and expansion of its syndicated financing. The existing lending banks, Raiffeisenbank Czech Republic and Tatra banka, decided to continue supporting Seyfor’s growth, with Slovenská sporiteľňa joining the financing as a new lender.
