11.7.2011
News

From the European Court of Justice

VAT: Action of the European Commission against the Czech Republic
  • The European Commission filed an action against the Czech Republic at the European Court of Justice for an infringement of the VAT Directive; the directive was infringed by the fact that the Czech Republic allows a person who is not obliged to pay tax to become a member of a group established for purposes of VAT. In the Czech Republic, the possibility of the group registration is often used solely by holding companies, which do not perform any economic activities and therefore are not persons obliged to pay the tax. The European Commission requests the relevant remedy and proposes to impose reimbursement of the costs of the litigation on the Czech Republic.

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The Municipal Court in Prague, in the first instance, dismissed the claims of former minority shareholders of PFNonwovens a.s., who challenged the adequacy of the consideration paid during the squeeze-out carried out in March 2021 and sought to have it increased by up to double the amount.

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