The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors of the Czech Republic has finalised its discussion paper concerning the ‘knowledge test’, i.e. whether a creditor knew, should, or could have known at the time of a delivery of goods or provision of services that the supply would not be properly paid, and its implication for correcting the VAT base for irrecoverable debts.

Extraordinary economic conditions brought about by the COVID-19 pandemic and consequent responses of governments in individual countries may bring numerous practical difficulties in applying the arm’s length principle. For this reason, the Organisation for Economic Co-operation and Development (the “OECD”) issued a report on 18 December 2020 containing recommendations for taxpayers and financial administrations how to proceed when applying transfer pricing rules in periods affected by the COVID-19 pandemic.

According to an amendment of the Income Tax Act approved by the Chamber of Deputies, employers will be able to provide employees with tax advantageous meal allowances directly in cash, in addition to the current options of providing company catering or meal vouchers.

Like most businesses, the insurance industry regularly evaluates the impact of the current coronavirus situation on day-to-day operations. This applies not only to insurers but also to brokers who must work in the interests of the client, whom they must assist during this difficult period and help him survive with the smallest possible losses. Therefore, we are actively discussing with our clients and evaluating the effects and possible measures regarding insurance, and we also offer the same to our potential clients. We see the services provided by brokers as an essential part of the overall risk management of each company, so do not hesitate to contact us.