Dentons Sets Legal Precedent in Czech Litigation

Dentons is a multinational law firm. Dentons was the world’s 5th-largest law firm by revenue, with $2.9B gross revenue in fiscal year 2019. The firm is called Dentons in all languages other than Chinese, in which it is called 大成.

Dentons law firm secured a victory for Veolia Energie ČR before the Czech Supreme Administrative Court, in a litigation regarding interest from illegal gift tax in energy context.

The case concerned a gift tax imposed on all emission allowances allocated to power plants in breach of the EU law.

A lawsuit is a proceeding by a party or parties against another in the civil court of law. The archaic term “suit in law” is found in only a small number of laws still in effect today.

The term “lawsuit” is used in reference to a civil action brought by a plaintiff demands a legal or equitable remedy from a court.

After the ECJ 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.

In its decision, the Supreme Administrative Court confirmed that the tax authorities have to pay interest from the date when the tax payer paid the illegal tax under the original decision of the tax authority imposing the tax and not only from the later decision on the change of the tax.

This refined the previous landmark decision of the same court from 2017, and confirmed Dentons’ position that the tax authorities need to pay the interest accrued from the illegally imposed tax with respect to the entire period.

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