Tag: Administrative practices

Czech Republic vs. DATON technology, spol. s.r.o., August 2010, Supreme Administrative Court , Case No 2 Afs 53/2010 – 63

Czech Republic vs. DATON technology, spol. s.r.o., August 2010, Supreme Administrative Court , Case No 2 Afs 53/2010 – 63

The tax authorities had increased the amount of the tax due to a change in the calculation of interest on loans granted by DATON technology to its partners (managing directors). At issue was whether the amount of the normal interest on loans granted by DATON technology to its managing directors should be determined on the basis of a fixed interest rate for the entire period of the loan or whether changes in the interest rate should be taken into account when calculating the interest as a monetary benefit – income from employment. Judgement of the Court The Supreme Administrative Court did not find that the pleaded ground of appeal was met and therefore dismissed the appeal. In failing to take account of changes in interest rates in 1998, the year for which it imposed the tax, when calculating the interest on the interest-free loan granted by the applicant (in its capacity as ’employer’) to the managing directors (in their capacity ... Read more