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Burden of proof weighs heavily on tax subjects

Tax subjects in general must prove all facts that they are required to disclose in their tax returns, reports and statements or those that the tax administrator requests them to prove. 

This issue was ruled on by the Supreme Administrative Court dated 3 July 2013 in file No. 2 Afs 90/2012 – 57. The tax subject in this case purchased used cars from a supplier from another EU member state (France) and applied a special regime for used goods traders (in compliance with Section 90 of Act No.  235/2004, Coll., on Value Added Tax). During tax proceedings, the tax subject did not fulfill the burden of proof to evidence its right to apply the special regime and argued that it had submitted the relevant evidence during the proceedings at the Municipal Court. The Supreme Administrative Court stated, however, that the evidence submitted during the litigation could not be taken into account.

The ruling dealt with the already second cassation complaint in the case in question. The Supreme Administrative Court decided in favour of the first complaint and returned the proceedings to the Municipal Court.

Tax subjects should therefore pay due attention and care to tax proceedings and submit or propose evidence only during the proceedings, i.e. no later than during the course of an appeal against a tax administrator’s resolution.

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