Penalty for filing VAT ledger statement for incorrect taxable period struck down

The Supreme Administrative Court (SAC) held (case 5 Afs 281/2021-34) that a CZK 50,000 penalty was not legitimately imposed on an entity that incorrectly filed a value added tax (VAT) ledger statement for a previous taxable period.

The SAC concluded that the purpose of such penalty is to deter taxpayers from not complying with their obligation to file a VAT ledger statement, and that in the case in question, the company’s conduct did not meet that criterion.

Source: KPMG

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