Investor Presentaiton

For taxpayer declaring a loss, the period in which a tax audit may be carried out is extend- ed by the period during which the loss may be utilised. Since losses may be carried forward for up to five years, if extended deadlines ap- ply, an audit can be carried out up to 15 years after the tax return became due. If an appeal is lodged against an assessment, the payment of any additional tax is deferred until the payment order becomes legally effec- tive, but interest continues to be calculated on the outstanding amount. Interest on overdue tax is assessed at the Czech National Bank repo rate plus 14 percent, start- ing on the fifth working day following the due date. Where additional tax is assessed, a pen- alty of 20 percent of the additional tax is levied. If the tax authorities reduce a VAT refund, they will levy a penalty of 20 percent of the reduc- tion. If a tax loss is reduced, one percent of the reduction becomes payable as a penalty. If the taxpayer corrects the tax base in an additional tax return, only interest on the overdue tax is payable. 20 67 J

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