Dentons’ Prague office has successfully represented Veolia Energie CR in a dispute with Czech tax authorities regarding interest from illegal gift tax.
According to Dentons, “the case concerned a gift tax imposed on all emission allowances allocated to power plants in breach of the EU law.” According to the firm, “after the European Court of Justice declared this tax illegal in the Skoda Energo case, the Czech tax authorities correctly reduced the tax but refused to pay the interest accrued as a result of the illegally imposed tax.”
The Czech Republic's Supreme Administrative Court ruled that the tax authorities have to pay interest starting from the date when Veolia Energie paid the illegal tax.
The Dentons team included Partner Petr Zakoucky, Managing Associate Barbora Obracajova, and Associates Michal Pelikan, Justina Bodlakova, Jan Tyls, and Anna Urbanova.