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).
© 2018 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.