Metodické pokyny GFŘ k úrokům z nesprávně stanovené daně

Methodological Guidelines on Interest from Incorrectly Assessed Tax

In the second half of last year, the General Financial Directorate (GFD) issued two methodological guidelines reflecting a favorable development in case law regarding interest paid by the tax authorities.

The updated methodological guideline on interest from incorrectly assessed tax[1] confirmed that a refundable overpayment arising from the imposition of interest on incorrectly assessed tax must be returned by the tax authorities ex officio within 15 days from the date it is credited to the personal tax account. According to the guideline, the interest must be credited to the personal tax account within 15 days from the last day of the period for which the interest accrued.

Based on other Supreme Administrative Court rulings[2], the financial administration adopted another methodological guideline, which acknowledges the possibility of "interest on interest" even for claims arising after January 1, 2021. For example, if the tax authorities did not credit the interest from incorrectly assessed tax to the personal tax account within the aforementioned 15-day period, there is a delay, and the taxpayer is entitled to additional interest for this period.

In light of these GFD guidelines, we recommend checking whether you may have a claim for interest on interest in connection with any interest paid by the tax authorities. Potential time limit for the claim may be the expiration of the tax payment period (simply said 6 years from the tax due date). We would be happy to assist you with the analysis if needed.

Finally, we note that a government amendment to the Tax Code is being discussed in the Chamber of Deputies, which would likely definitively exclude the possibility of further interest on interest paid by the tax authorities in the future.

For any inquiries, please contact authors of the article or the EY tax team you regularly cooperate with.

Authors:

Jakub Tměj

Petr Sedláček

[1] Methodological Guideline of the General Financial Directorate on Interest from Incorrectly Assessed Tax No. 9441/24/7700-50123-051418 dated July 19, 2024.

[2] Methodological Guideline of the General Financial Directorate on the Possibility of Claiming "Interest on Interest" No. 56646/24/7700-50123-011550 dated October 17, 2024.