Home » News & Publications » Article

Guideline of the General Financial Directorate

On 2 November 2011 the General Financial Directorate (the “GFD”) issued Guideline GFŘ-D-5, which sets forth the procedure tax administrators should follow when implementing guarantees in tax proceedings.

The text of the cited guideline includes a summary of regulations concerning legal guarantees with an impact on tax proceedings pursuant to individual legal regulations.

The legal guarantee applies to:

  • donors in the case of gift tax and the purchaser as the acquirer of real estate in the case of real estate transfer tax;
  • participants of a commercial company, also for such company’s tax liabilities (the guarantee rules are described in detail in respect of changes concerning the participants in question, in the case of a declaration of bankruptcy in respect of the company’s assets, after dissolution of the company or prior to incorporation of the company) pursuant to the Commercial Code;
  • members of the Board of Directors and the Supervisory Board of a public limited company and executives of a private limited company pursuant to the Commercial Code;
  • silent participants pursuant to the Commercial Code;
  • tax liabilities in the case of transformations of commercial companies and cooperatives pursuant to Act No. 125/2008, Coll., on Transformations of Commercial Companies and Cooperatives;
  • payers that are recipients of a taxable supply for unpaid tax pursuant to the VAT Act.

The guideline also describes the legal guarantor’s position in tax proceedings and the procedure which the tax administrator should follow vis-à-vis such guarantor.

It is necessary to distinguish tax securement by a guarantee on the basis of third-party acts. In such events, the tax administrator shall proceed similarly as in the case of legal guarantee.

Copyright © 2000 – 2020, Kocián Šolc Balaštík
KŠB Institut | | Web ch

×