KŠB Energy Client Wins Administrative Proceedings
In response to the lawsuits filed by the client, the Supreme Administrative Court dismissed the decision made by the Appellate Financial Directorate, which will now re-decide the client’s appeals against payment assessments issued by the first-instance tax authorities. The payment assessments were issued in line with the so-called Three Taxes Act (the Inheritance, Donation and Real-Estate Transfer Tax Act). In the lawsuits, the client documented that the first-instance tax authorities were not authorized to apply the relevant provisions of the Three Taxes Act because the Act is in conflict with EU law. The Appellate Financial Directorate is bound by the Supreme Administrative Court’s ruling, which agreed with the reasoning posed by the client.
The Supreme Administrative Court’s rulings have a major precedential importance for the application of EU laws by Czech courts in the Czech Republic.
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