MEASURES TO RESTRICT ABUSE OF THE PARENT-SUBSIDIARY DIRECTIVE
In January 2015, the EU Council amended Directive 2011/96/EU on the common system of taxation applicable to parent companies and subsidiaries of different Member States. The objective of the Directive is to exempt dividends and other profit distributions paid by subsidiary companies to their parent companies from withholding taxes and to eliminate the double taxation of such income for the parent company. The objective of January’s amendment is to prevent companies from taking advantage of unintended benefits from the Directive and requires Member States to deny tax benefits to companies which show transactions which merely provide a tax advantage but which otherwise have no due business grounds.
The Czech Republic is required to respond by 31 December 2015 and put in place legislation that will ensure that Czech law is harmonized with the Directive. Thus, taxpayers will need to be able to prove to the tax authorities that the transactions shown in their tax records did in fact take place on sound business grounds.
Other articles
KŠB Partner Tomáš Sequens Speaks at the “Law and the Environment” Conference
Organized by Česká justice and Ekonomický deník at Truhlárna Karlín in Prague, the “Law and the Environment” conference brought together representatives from the government, the business sector, the professional community, and the legal profession to discuss the current challenges related to environmental protection, decarbonization, and the regulatory framework for doing business.
KŠB Provide Insight into the Legal Support for Smetana Litomyšl Music Festival
Our colleagues Sylvie Sobolová and Jana Guričová were interviewed by Jan Januš’s legalweb about the legal support for Smetana Litomyšl, one of the most important music festivals in the Czech Republic.
KŠB Sponsors 19th Annual Student Research and Professional Activities Competition at Charles University’s Faculty of Law
Kocián Šolc Balaštík was once again a partner of the Student Scientific and Professional Activities (SVOČ) competition at Charles University’s Faculty of Law. The awards ceremony for the 19th annual competition took place on June 11, 2026, with students, academics, and competition partners in attendance.
