In the Czech Republic, the tax administration in 2016 conducted approximately 900 transfer pricing inspections—revealing a year-on-year increase of more than 10% in the number of audits.
The following table reflects tax assessments resulting from the increasing number of transfer pricing inspections over the past five years.
|Year||Additionally assessed tax in CZK||Increase in the tax base in CZK||Decrease of reported tax loss|
|2013||71 759 104
||336 386 414||131 267 918|
|2014||59 402 410||259 612 320||244 221 586|
|2015||446 263 377||2 431 935 440||390 970 153|
|2016||886 116 252||4 783 203 802||8 502 980 932|
Read more in a May 2017 report prepared by the KPMG member firm in the Czech Republic: Transfer pricing: financial administration’s number one hit
The statistics reveal that the tax administration continues to have a growing interest in transfer pricing (whereas, in the past tax officials seemed to prefer to avoid transfer pricing issues, and transfer pricing inspections were quite rare). Read TaxNewsFlash-Transfer Pricing that reports information about the status of transfer pricing audits as of May 2016.
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