Tax Law and Public Finance
What is tested
Act No. 280/2009 Sb. (daňový řád), the substantive tax acts (DPH No. 235/2004 Sb., income taxes No. 586/1992 Sb., property tax No. 338/1992 Sb.) and the public finance framework (218/2000 Sb., 243/2000 Sb., NKÚ No. 166/1993 Sb.). Expect procedural deadlines, assessment and tax execution.
Core rules
- Taxes may be levied only under the law; the tax administrator applies the daňový řád and must protect legitimate expectations.
- Daňové tvrzení: the return is due within 3 months after the end of the tax period, extended to 4 months if filed electronically and 6 months where a tax adviser files it. VAT returns are monthly or quarterly.
- Assessment: the tax is assessed on the return or by a platební výměr after daňová kontrola. Doměření is possible within the preclusive period of 3 years (§ 148), which starts at the end of the year in which the tax became due and is extended by each qualifying act.
- Remedies: odvolání within 30 days of the platební výměr, then an administrative action.
- Daňová exekuce (§ 175 ff. daňového řádu) is carried out by the tax administrator: srážky ze mzdy, přikázání pohledávky (bank account), prodej movitých and nemovitých věcí, zřízení zástavního práva. An exekuční příkaz is issued and notified to the taxpayer.
- Relief: posečkání, splátky and prominutí daně or its accessories are discretionary.
- Public finance: the state budget, the RUD under Act No. 243/2000 Sb. determining municipal and regional shares, and NKÚ control of state property.
Worked example
A company files its 2022 income tax return on 31 March 2023. The preclusive period runs to 31 December 2026. A daňová kontrola started in 2025 and ending with a doměření in 2026 is timely. If the administrator takes no qualifying act, the right to assess lapses by operation of law on 1 January 2027: the tax can no longer be demanded, and an exekutor would have no valid title to enforce.
Traps
Confusing prekluze with promlčení - prekluze operates by law and needs no objection; believing daňová exekuce requires a court order; miscounting the 30-day appeal period; mixing the 4-month electronic and 6-month adviser return deadlines.