Tax Code Amendment Ultimately Not Adopted with Only Three Votes Short
We will have to wait a little bit longer because easier electronic communication with the Tax Office and management of our tax accounts is still to come. The Chamber of Deputies was only three votes short of adopting the amendment to the Tax Code. At the same time, however, the subtle extension of the deadline for an excess deduction refund by 15 days did not pass either, which, under the current circumstances, is undoubtedly good news for all VAT payers. In today’s newsletter, we will share the central points of this (not yet adopted) amendment. We’ve already listed the proposed changes to the Tax Code in our pre-Christmas seminar on News in Taxes and Accounting held on 11 December 2019. The Government introduced the amendment to the Chamber of Deputies on 28 August 2019, and since then, it has been gradually negotiated and supplemented with many proposed changes. The last of these, proposed by the Senate, was submitted to the Chamber of Deputies on 19 March 2020 and included, among other things, the cancellation of the infamous extension of the excess VAT deduction refund from 30 to 45 days. However, the Chamber of Deputies rejected the Senate’s version of the amendment and subsequently voted in favour of its original version on 22 April 2020, which required the consensus of an absolute majority of all deputies (101). Only 98 deputies (from ANO, ČSSD, and KSČM) expressed their consent to the proposal, thus dismissing all of the proposed changes.
The amendment contained a relatively large number of changes, a summary of which you will find below
MY Taxes (MOJE daně)The main, and probably the most promoted, point of the amendment was the MY Taxes project, supposedly representing a way to “Modern and easY online communication and settlement of tax obligations with the Tax Office from the comfort of your home”. What exactly does this project entail? In reality, this project was mainly about expanding the possibility of filing tax documents (tax returns, reports, or statements) using the existing tax information box (DIS). Taxpayers should also be able to obtain information from DIS collected in their respective files and selected information on their rights and obligations. It should be mentioned that the amendment’s statement of reasons did not specify what “selected” information should be available in DIS or when.
Introducing DigitisationAn equally important point of the amendment was the introduction of electronic devices aimed at motivating taxpayers to use such devices in order to simplify their administrative and communication activities with the tax administrator. These could include:
- Extending the deadline for filing income tax returns by one month for those taxpayers who are not legally required to file an audited financial statement or whose tax return is not processed and filed by a lawyer or tax advisor,
- The tax administrator’s obligation to refund the returnable overpayment within 15 days, instead of the current 30 days, from the date of receipt of the request for a returnable overpayment refund, provided such a request is submitted electronically.