Tax and customs administration reform
The Parliament has approved a draft bill on the financial administration of the Czech Republic, an act associated with adopting the Act on the Financial Administration of the Czech Republic (the “Financial Administration Act”) and the Act on Customs Administration of the Czech Republic. Both Acts shall take effect on 1 January 2013.
Under the Financial Administration Act, the existing 8 Tax Directorates and 199 Tax Authorities shall be transformed into 14 Tax Authorities, each based in one of the Czech Republic’s regions, and 199 local offices. The General Tax Directorate and a Specialized Tax Authority will continue to exist, while a new Tax Appeal Authority will be established.
The Specialized Tax Authority shall start operating before the end of 2012. In 2012 the Prague Tax Directorate shall be the authority in charge of dealing with appeals filed in matters on which it has issued decisions. The restructuring of the customs administration will involve the transformation of the three-tier structure into a two-tier one consisting of the General Customs Directorate and 15 Customs Authorities. The Customs Directorates will be closed.
Both bills must still be signed by the President before taking effect.
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