Novela daňového řádu míří do senátu

Last year, we informed you HERE that the Ministry of Finance was preparing an amendment to the Tax Code. The revised proposal of this amendment was approved by the Chamber of Deputies at the end of April and was recently submitted to the Senate for approval.

The amendment brings a number of adjustments to the current rules. From our perspective, these are not conceptually groundbreaking changes, but in some specific aspects, they are certainly worth noting. Below is a brief selection of those that caught our attention the most:

• Breaking the statute of limitations for tax assessment even in the case of a criminal offense committed by a person other than the relevant tax entity.
• Allowing the tax authorities to issue a call to the guarantor within the tax payment deadline, not only within the tax assessment deadline.
• New regulation of the transfer of tax liability upon the dissolution of a trust (the person who received assets from the trust is responsible for fulfilling the payment obligations of the trust, up to the amount of the received assets).
• Explicit prohibition of interest on interest, even those paid by the tax authorities.
• Clarification that the basis for calculating the penalty for late submission of a tax return is the amount of tax determined in the proceeding directly related to the late submission of the tax return.
• Possibility of complete remission of tax penalty (currently limited to 75%). At the same time, a new reason for tax penalty remission is to be introduced, namely to prevent double punishment if the penalty arose after the final court decision imposing a criminal sentence on the tax entity for a tax-related criminal offense.
• Limiting the consideration of overpayments in the calculation of late payment interest only to those recorded by the subject-matter competent tax authority.
• Changes in the regulation of mass tax remission (newly by government regulation and allowing mass tax deferral).
• Further changes in the rules for delivery, divided administration, tax execution, and form submissions.

The bill will now be discussed by the Senate. Therefore, further amendments to the proposal cannot be ruled out. If there are no delays, most points of the amendment should come into effect on July 1, 2025. The remaining changes should come into effect on January 1, 2026 (e.g., new regulation for form submissions and for the transfer of tax liabilities upon the dissolution of a trust).

If you have any questions, please contact the authors of the post or the members of the EY team you collaborate with.

Authors:

Jakub Tměj

Petr Sedláček