NSS k pokutě za neoznámení osvobozeného příjmu

A taxpayer (individual) sold a share in a company after meeting the holding period time-test. The income from this sale was therefore exempt from tax. However, the taxpayer failed to notify the tax authority of the realization of such income within the statutory deadline. As a result, the tax authority imposed a penalty on the taxpayer.

The taxpayer justified the failure to report by stating that he sold his share at a loss. The selling price was lower than the amount corresponding to the acquisition of the share. Therefore, in his opinion, there was no realization of income, as income should be interpreted in accordance with case law as an increase in wealth.

The NSS rejected this argument. In the reasoning, it states that income arises at the moment of receiving the consideration (e.g., when the amount is credited to the account), even if the taxpayer's overall wealth position does not actually increase. The NSS consciously deviated from established case law of both the NSS and the Constitutional Court.

Furthermore, the NSS extensively explains the difference between income and the tax base. The increase in wealth plays a role only when determining the tax base, for example, through tax-deductible expenses, and not at the moment of income realization. For exempt income, the reporting obligation is purely based on the receipt of the income and its amount.

Authors:

Adam Linek

Jaroslav Hušbauer