KSB lawyers will lecture on issues relating to Czech renewable resources on the Czech-Polish Energy Day in Ostrava on 20 April 2011. The lecture will include information on the fundamental principles on which the draft bill on subsidized energy resources is based, including comparison with the currently applicable legislation.

Kocián Šolc Balaštík will hold a workshop on 6 April 2011 on selected major provisions of the Code of Tax Procedure and the up-to-date interpretation of the VAT Act amendment that took force and effect on 1 April 2011. The workshop is to be further focused on the case-law impact on conflict between employment and office.

For the third year in row, Václav Rovenský and Ján Béreš prepared an up-to-date overview of Czech legal regulations in the electricity sector for the worldwide publication Getting the Deal Through – Electricity Regulation 2011. The overview summarizes the current regulations of the electricity business in the Czech Republic and focuses inter alia on topics relating to the determination of electricity prices in the Czech Republic. The publication was issued by the London-based market analysis company Law Business Research Ltd. The text can be downloaded here

Law firm Kocián Šolc Balaštík successfully represented Reckitt Benckiser (Czech Republic), spol. s r.o. in proceedings before the Antimonopoly Office in the matter of potential infringement of competition rules by concluding a prohibited agreement on direct or indirect determination of prices and other commercial conditions on the washing powders market. The proceedings were terminated through settlement.

Kocián Šolc Balaštík is one of five Czech law firms nominated for this year’s Chambers Europe Awards for Excellence in the category of National Firms. KSB won the award in 2008 and was shortlisted as one of the best law firms in 2009 and 2010.

Communication of the General Financial Directorate on tax pursuant to the Act on Renewable Resources; Instruction of the General Financial Directorate No. GFŘ-D-2 on the method of calculation of corporate income tax and compilation of tax returns for taxation period 2010 by taxpayers using the component depreciation method to depreciate their assets; The General Financial Directorate provided supplementing instructions to complete the form for the statement of income tax from employment income for 2010 and supplementing information on applications for tax bonuses; Changed deadline for filing tax returns and tax statements

The amendment to the VAT Act

Value Added Tax Act

IFLR1000 – The Guide to the World’s Leading Financial Law Firms, a prestigious international rating publication, has recommended KSB in all categories for the year 2011. KSB, as in previous years, has been recognized as a leading law firm in the Czech Republic in the fields of capital markets, banking and project finance, mergers & acquisitions and restructuring and insolvency.

KSB’s comments on upcoming major changes to the Civil Code were published in Lidové noviny’s supplement Law & Justice on 7 February 2011. The amended Civil Code, together with the Commercial Companies and Cooperatives Act and Private International Law Act, lays the foundation for recodification of private law.

Christian Blatchford publishes an article in the PPP Bulletin, the professional quarterly of the PPP Association, proposing a realistic solution for accelerating construction of the D3 motorway in the form of PPP. To download the article click here.

Christian Blatchford publishes an article in the PPP Bulletin, the professional quarterly of the PPP Association, drawing attention to joint characteristics of project financing and PPP – Public Private Partnerships, i.e. the cooperation between public and private sector. To download the article (in Czech only) click here.

Jan Dědič and Petr Kasík published an article in the professional monthly Obchodněprávní revue, which specializes in commercial law and law of financial markets, on the topic of decisions of the sole member of the company in events where such sole member is a foreign subject. The article addresses the consequences arising from the Supreme Court of the Czech Republic ruling that a decision of the sole member does not constitute a legal act.

Christian Blatchford publishes an article in the PPP Bulletin, the professional quarterly of the PPP Association, appealing for acceleration of implementation of PPP projects in the Czech Republic as necessary. To download the article (in Czech only) click here.

The Bank Board of the Czech National Bank appointed Petr Kasík, a KSB partner, as the chairman of the III Chamber of the Czech National Bank’s Appeals Committee effective as of 1 January 2011. Petr Kasík has been on the Czech National Bank’s Appeals Committee since 2008.

Jan Lasák published an article in Epravo.cz Magazine addressing issues associated with lawsuits filed by minority shareholders. These issues are fairly relevant at present as lawsuits filed by “professional” minority shareholders constitute an imprescriptible means of coercion that managers of public limited companies with minority shareholders must keep in mind and deal with in managing and administrating the company’s affairs. To download the article (in Czech only) click here

The Senate, at the 4th session held on 26 January 2011, returned the VAT Act with two proposed amendments to the House of Representatives

Information on filing real estate tax returns; Summary of 2011 real estate tax coefficients; Translation of selected chapters of the Transfer Prices Directive; 2010 Uniform Exchange Rates

Change of duties of parties that pay tax effective as of 1 January 2011

Judgment by the Supreme Administrative Court regarding the Executive’s employment

Value Added Tax Act

Discounts on insurance – Act No. 221/2009 Coll. amending Act No. 589/1992 Coll. on Social Security Insurance Contributions and Act No. 586/1992 Coll. on Income Taxes; The Payment System Act; The Amendment to the Act of Administration of Taxes and Fees through the Payment System Act

Notification of the Finance Ministry dated 2 December 2008 on classification of tangible assets into depreciation groups; Decree sets foreign meal allowances for 2009; Information on application of the provisions of Section 36, subsection 11 of the VAT Act

Jan Lasák is the author of the first publication of a new series by Wolters Kluwer that brings a practical and complex collection of the valid current wording of communitary legal regulations from the field of law of commercial companies together with the decision-making practice of the European Court of Justice.

Kocián Šolc Balaštík represented Mr. Miloš Červenka and his company MCA, a.s. in respect of a major real estate deal with PPF group. The concluded agreements concern extensive land parcels intended for the execution of development projects in and around Prague together with other investment partners.

The Czech newspaper Lidové noviny published on 3 January 2011 and on 10 January 2011 in its section Law & Justice (Právo & Justice) an overview as prepared by Kocián Šolc Balaštík, of the most important legal and tax changes valid since the start of January 2011.

Czech Television (Česká televize) presented a news report on the subject of the Commercial Register in the Czech Republic and Poland with Darina Kovačíková, attorney at Kocián Šolc Balaštík’s office in Ostrava. The report can be found on www.ct24.cz/zive, in Archive section, broadcast on 3 December 2010, Události v regionech (Ostrava) TV show, broadcast time 04:23 (minute of the show 19:30 to 22).

Helena Navrátilová, the head of KSB tax team, has been interviewed regarding the new Tax Procedure Code (valid since January 2011) and also on other changes in tax regulations coming this year, in the Téma Z1 show broadcast on the news and public affairs television station Z1.

Kocián Šolc Balaštík successfully represented Asiana spol. s r.o. (a limited liability company) in the matter of investigation by the Office for the Protection of Competition  (the “Office”) of violation by STUDENT AGENCY, s.r.o. (a limited liability company) of Act on the Protection of Competition.

On 25 November 2010 Kocián Šolc Balaštík held, in cooperation with the Czech-Polish Chamber of Commerce and Polish law firm Wardyński & Partners, a specialist seminar focused on basic differences in legal regulation of business activities in the Czech Republic and Poland.

KSB partner Martin Šolc comments in the weekly Euro on the need to push through the new Civil Code and Act on Corporations. He draws attention to a number of problems caused by existing legal regulations for entrepreneurial environment, for example the existence of two different legal regimes for one and the same agreement, the institute of invalidity of legal acts and others. The whole article can be downloaded here (in Czech only).

KSB partner Martin Šolc, who specializes in advisory on transactions in the field of mergers and acquisitions, has also been performing professional activities for a long time with the International Bar Association (IBA), a leading organization of international legal practitioners, bar associations and law societies, bringing together more than forty thousand attorneys and one hundred and ninety-seven chambers of attorneys on all continents.

Notification of the Finance Ministry dated 2 December 2008 on classification of tangible assets into depreciation groups; Decree sets foreign meal allowances for 2009; Information on application of the provisions of Section 36, subsection 11 of the VAT Act

The European Court of Justice (ECJ) issued in July 2010 a resolution concerning application of VAT to invoices for delivery of goods or provision of services that contain an error that is not in compliance with all conditions imposed by Articles 167, 178, letter a), point 1 and Article 226 of the Council Directive No. 2006/112/EC (“Directive”).

Amendment to the Act on Local Financial Authorities: Changes to Respective Roles of Authorities and a Specialized Financial Office

Amendment to the Act on Local Financial Authorities: Changes to Respective Roles of Authorities and a Specialized Financial Office

Notification of the Finance Ministry dated 2 December 2008 on classification of tangible assets into depreciation groups; Decree sets foreign meal allowances for 2009; Information on application of the provisions of Section 36, subsection 11 of the VAT Act

Law firm Kocián Šolc Balaštík has been named leading law firm in the category of company and competition law in the Law Firm of the Year 2010 competition, organized by Epravo.cz.

Law firm Kocián Šolc Balaštík provided legal services to the group Banque Privée Edmond de Rothschild Europe in connection with the opening of its agency in the Czech Republic. KSB’s advice focused on in particular preparation and submission of an application to the Czech National Bank for registration of the agency of the group Banque Privée Edmond de Rothschild Europe.

Law firm Kocián Šolc Balaštík provided legal advisory to TRADE B.G.M. a.s. in connection with its development of a plant for the mining and treatment of kaolin in the city of Dong Hoi in Vietnam, in the approximate value of CZK 450 million.

Law firm Kocián Šolc Balaštík is again organizing its traditional Charity Concert for the Good Will Committee of the Olga Havel Foundation. The now sixteenth annual concert will be held on 21 November 2010 from 7 p.m. in the Church of St. Simon and St. Jude, Old Town Prague.

Kocián Šolc Balaštík advised REMA Systém, a.s., a waste electrical and electronic equipment collection system operator which won an administrative lawsuit against a decision by the Minister of Environment. The proceedings concerned the refusal of an application to register REMA Systém, a.s. in the so-called List of manufacturers of electrical devices that are to be in charge of ensuring the financing of the disposal and handling of historical electrical devices within class 3 – IT and telecommunications equipment.

Kocián Šolc Balaštík provides ongoing legal advice to Penzijní fond České pojišťovny, a.s., in particular most recently in connection with the amendment to the Pension Insurance Act.

Tomáš Sequens and Martin Škrabal prepared a summary of the legal regulations concerning the environment sector in the Czech Republic for the publication The International Comparative Legal Guide to: Environment Law 2009. The publication was issued by the British company Global Legal Group Ltd. The document can be downloaded here

Václav Rovenský and Tomáš Sequens prepared a chapter focused on the Czech Republic for the international publication Getting the Deal Through – Gas Regulation, 2010 edition; the chapter summarizes legal regulations and conditions for business activities on the gas market in the Czech Republic. The publication was issued by the London based market analysis company Law Business Research Ltd. The document can be downloaded here

Václav Rovenský and Ján Béreš prepared an up-to-date summary of the legal regulations concerning the electroenergy business in the Czech Republic for the publication Electricity Regulation 2010 in the series Getting the Deal Through. The publication was issued by the London based market analysis company Law Business Research Ltd. The document can be downloaded here

Václav Rovenský and Tomáš Sequens drafted as a part of the international publication Getting the Deal Through – Gas Regulation, 2009 edition, a summary of legal regulations and conditions for doing business on the Czech gas market. The publication was issued by the London based market analysis company Law Business Research Ltd. The document can be downloaded here

Law firm Kocián Šolc Balaštík advised the Linde Group, one of major publishing houses focused on professional legal and economic literature in the Czech Republic, during an intra-group merger.

Helena Navrátilová, head of the KSB tax team, commented on one of the most recent judgments of the Supreme Administrative Court for the law and taxes section of the weekly Euro. The court has come to the conclusion that interests and other costs of a public limited company in connection with receipt of, and drawing on a loan used to pay dividends to shareholders can be considered as tax deductible.

Kocián Šolc Balaštík provided legal services to Spolek pro chemickou a hutní výrobu in founding a joint venture with the Japanese DIC Corporation, one of the world-wide leaders in the specialty chemicals industry.

Law firm Kocián Šolc Balaštík provided legal consultancy to sellers during the transfer of control over a portfolio of 2,700 apartments in Litvínov. The control of the apartments was taken over by the CPI Group.

Martina Zímová and Ivo Šimeček published an article on the new block exemption for vertical agreements between undertakings in weekly magazine Ekonom. Pursuant to the applicable Commission Regulation, certain vertical agreements (such as agreements between manufacturers and distributors, franchising agreements, etc.) are permitted subject to their compliance with predefined requirements although each one of them could be considered as illegal and, as such, be banned. This applies to all distribution relationships relative to the sale of goods. To download the article (in Czech only) click here

Kocián Šolc Balaštík was founded 20 years ago on 1 July 1990. The originally small traditional law firm rapidly grew over several years into a dynamic modern law firm which, with a team of seventy lawyers, five tax advisers and over sixty employees, now belongs among the leaders on the Czech market. KSB celebrated its 20th anniversary with clients, business partners and friends in the historical premises of Martinický Palace on Hradčanské náměstí in Prague.

Notification of the Finance Ministry dated 2 December 2008 on classification of tangible assets into depreciation groups; Decree sets foreign meal allowances for 2009; Information on application of the provisions of Section 36, subsection 11 of the VAT Act

Amendment to the Act on Local Financial Authorities: Changes to Respective Roles of Authorities and a Specialized Financial Office

which occur due to the decision of the Ministry of Finance or the tax office. Entities, which are exempt from tax or tax interest and charges by the state, are in principle recipients of public funds according to the Supreme Administrative Court, and the duty of confidentiality does not apply on information on exemptions within the framework of the tax proceedings.

On 17 June 2010, Petra Mirovská presented a lecture on behalf of the law firm Kocián Šolc Balaštík on the topic of sending unsolicited commercial communications at a seminar organized by OFFICE HOUSE CZ s.r.o. in Prague. The aim of the presentation was to provide basic practical information on the practice connected with distribution of unsolicited commercial communications.

On 30 June 2010, the law firm Kocián Šolc Balaštík was present at the ceremonial opening of the first of five halls of the “Green Meadow Logistic Center” in the Pardubice-Semtín industrial zone built by D+D Park Pardubice a.s.

Discounts on insurance – Act No. 221/2009 Coll. amending Act No. 589/1992 Coll. on Social Security Insurance Contributions and Act No. 586/1992 Coll. on Income Taxes; The Payment System Act; The Amendment to the Act of Administration of Taxes and Fees through the Payment System Act

Amendment to Act on Administration of Taxes and Fees and Income Tax Act - flat tax-deductible cost on transport; Amendment to Income Tax Act – flat tax-deductible costs for natural person-entrepreneur; New Tax Regulations

Notification of the Finance Ministry dated 2 December 2008 on classification of tangible assets into depreciation groups; Decree sets foreign meal allowances for 2009; Information on application of the provisions of Section 36, subsection 11 of the VAT Act

Double amendments of Income Tax Act; Amendment to Act on Social Security - discounts on insurance

Amendment to VAT Act – reduced rates for restaurant services

This special issue of Tax News is to inform you of the latest judgement by the Supreme Administrative Court of the Czech Republic (the “SAC”) No. 5 Afs 25/2009 – 98 dated 25 March 2010. We believe the ruling to be a substantial breakthrough for further review of, and dealing with, costs in terms of determining the tax base. The judgment is available at the SAC’s website: http://www.nssoud.cz/main.aspx?cls=anonymZneni&id=22401&mark=

Pursuant to the ECJ’s interpretation, the cleaning of common areas cannot be included as a part of housing rental services. Supply of rental apartments is exempt from VAT, but services of cleaning common areas must be subject to VAT.

The Supreme Administrative Court cancelled the challenged judgment and returned the matter to the Regional Court for further proceedings.

In the event that the date for delivery of a tax administrator’s letter is determined by a legal fiction, i.e. for example ten days after the recipient fails to collect the relevant document and has been appropriately notified in advance that the document was deposited, the date of a statutory holiday or Saturday or Sunday shall may also be considered as the date of delivery.

The ruling will affect assessment of the issue as to whether the commencement of a tax audit, without notification of any doubt or suspicion as to compliance with tax duties interrupts the statutory time period within which tax assessments may be made.

Amendment to the Act on Local Financial Authorities: Changes to Respective Roles of Authorities and a Specialized Financial Office

Amendment to the Act on Local Financial Authorities: Changes to Respective Roles of Authorities and a Specialized Financial Office

This major amendment was approved by the House of Representatives on 18 May 2010 subject to the Senate’s proposals for changes. It has been signed by the President of the Czech Republic and is waiting for publication. The amendment contains a set of changes which should increase the transparency of awarding contracts, simplify the current procedures and impose clearer rules on an overall basis for dealing with public funds.