On 10 August 2023. The Supreme Administrative Court decided to dismiss the cassation appeal filed against the judgment of the Brno District Court under case no. 9 Afs 42/2023-43.
The dispute relates to the 2015 tax year, for which the tax authority did not take into account the company's reported costs for services consisting, inter alia, of management, consulting, reporting and financial accounting invoiced from the parent company.
The disputed circumstance in this case was the question of legitimate expectations. The subsidiary claims that the tax authority examined exactly the same facts in two different tax audits for 2009 and 2015, but assessed them in a completely different way. To the extent that the tax authority accepted the parent company's services supported by invoices as deductible costs for the 2009 tax year, it established an established administrative practice and should therefore have done the same in the present case.
The Supreme Administrative Court, however, disagrees, as it accepts that an administrative practice establishing a legitimate expectation is an established, uniform and long-standing action of public administration bodies, which repeatedly confirms a certain interpretation and application of the law.
