MEASURES TO RESTRICT ABUSE OF THE PARENT-SUBSIDIARY DIRECTIVE
In January 2015, the EU Council amended Directive 2011/96/EU on the common system of taxation applicable to parent companies and subsidiaries of different Member States. The objective of the Directive is to exempt dividends and other profit distributions paid by subsidiary companies to their parent companies from withholding taxes and to eliminate the double taxation of such income for the parent company. The objective of January’s amendment is to prevent companies from taking advantage of unintended benefits from the Directive and requires Member States to deny tax benefits to companies which show transactions which merely provide a tax advantage but which otherwise have no due business grounds.
The Czech Republic is required to respond by 31 December 2015 and put in place legislation that will ensure that Czech law is harmonized with the Directive. Thus, taxpayers will need to be able to prove to the tax authorities that the transactions shown in their tax records did in fact take place on sound business grounds.
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KŠB "Scores" Major Infrastructure Win: The New Ball Sports Centre in České Budějovice
KŠB has advised on the execution of a construction contract for the Ball Sports Centre in České Budějovice, a major public infrastructure project set to become a new landmark for sport and community life in the region.
Suburbanization Trends and Sustainable Commuting: Will the Construction Act Amendment Change the Landscape?
The discussion surrounding the current proposal to amend the Construction Act (Parliamentary Print 67) has moved to the committee stage in the Chamber of Deputies following its first reading. The primary declared objective is the acceleration of construction, particularly regarding residential buildings. The shortage of affordable housing remains a pressing issue in major cities, both in the Czech Republic and abroad, giving rise to the pervasive trend of suburbanization. This raises the question: does the proposed amendment truly have the ambition to reverse this trend, and will an increase in housing construction alone suffice?
Success for KŠB’s Litigation Team
KŠB’s litigation team, led by Pavel Dejl and Hana Dejlová, has achieved a significant victory for a long-standing client in a dispute with the Czech Ministry of Justice concerning excessively lengthy court proceedings.
