Proving source of property may be requested by tax authorities in Czechia

Beginning from December 2016 the Tax Authorities may under certain circumstances request a tax payer to prove source of property. Undeclared income may be taxed at double of regular tax rate.

New regulation gives the tax authorities power to audit volume of property of tax payers. Request for disclosure of source of income can be issues provided the tax authorities find out after some preliminary review that the difference between declared income and increase in property or consumption exceeds CZK 5 million. In case the tax payer fails to provide relevant evidence and at the same time it will not be possible to determine income tax in regular way, the tax authorities will assess tax by estimate or will negotiate it with the tax payer. Penalty from overdue tax can reach up to 100% of tax. Failure to comply with the new regulation can be penalized by a sentence of up to 6 month to 3 years in jail or by a monetary penalty.

Latest newsletters

Report on corporate income tax information

SME INFO Nr.2024-1 Hungary – Looking back at the Community directives adopted in previous years, it can be said that companies, established in the EU, increasingly face with harmonised reporting obligations across Member States. Several such reports have already been introduced in Hungary, such as the Country-by-Country (CbC) report to be submitted to the tax authority or the report on payments to governments to be published together with the annual accounts. In this publication, we review the latest corporate tax information reporting requirements, applicable for the first time for the financial year, starting on or after 22 June 2024.

Changes to Act on Social Contribution Tax concerning the tax allowance for labour market entrants

SME QUICK INFO Nr.Q2024-01 –The amendment Social Contribution Tax will affects the preconditions and the period of application of the social contribution tax allowance for employees who are considered to be entrants to the labour market.

Changes for employers in social insurance when employing Agreements to work

Registration is compulsory from 1 July 2024 for all employees with Agreement to work (ATW) as well as for all employers who have only employees with ATW.

Latest blog posts

Securing Executive Buy-in for Digital Transformation

PS Digi-Blog 7 — In the complex and fast-paced journey of digital transformation, having the executives on your side isn't just helpful; it’s essential. Imagine trying to drive a car without a steering wheel—that's what trying to implement digital changes without executive support might feel like. The commitment from those at the top greatly increases the chance of everyone cooperating, and provides both the resources and the strategic oversight needed to navigate through the digital age

PS APPS: Accounts Payables (AP) processing by automated system

Top 5 Accounts Payable Challenges Faced by Businesses

Processing accounts payable (AP) invoices can feel like an Olympic event for many finance teams, whether it's an internal accounting team or an outsourcing partner.

PS In-Voice – PS APPS touchless accounting: A new step in the evolution of accounting

PS In-Voice podcast series: In this episode, two PS experts discuss touchless accounting and its practical applications. They introduce the PS APPS integrated system, which enables the automation of AP processing, minimizing the need for human intervention.