Jak je to s dvojím trestáním v kauzách o zneužití práva?

For many years, we have been observing a series of court cases with a common denominator in the form of so called crown bonds. It is hardly surprising that the overwhelming majority of court decisions in these cases end with bad news for taxpayers. However, what may surprise some is that tax authorities sometimes "feast" on the "sinners" not just once, but twice. First, they impose corporate income tax due to the disallowed deduction of interest expenses from crown bonds, and then they go for a second round with an assessment of withholding tax on the interest payments from the same bonds to individuals.

There are fighters who attempt to legally contest this and argue that such "double punishment" is unlawful.

Unfortunately, they have been unsuccessful. The Supreme Administrative Court dryly states that interest expenses and withholding tax on interest are separate issues and therefore are assessed independently. Case closed.

Abuse of rights is indeed a tool with dangerous consequences for taxpayers.

Authors:
Radek Matuštík
Hana Cicvárková