Recently, the Supreme Administrative Court has issued a landmark decision for companies that have incentives to invest in older systems. The court confirmed that failure to meet the condition not to increase the tax base for calculating tax relief through related party transactions should not result in a complete loss of investment incentives, but only in a reduction in the tax relief claimed.
The Court further held that since the transitional provisions did not contain any special, separate rules for investment incentive schemes, even breaches of the condition not to increase the base for calculating the tax incentive by transactions entered into between related parties in the periods prior to the amendment’s effective date would be governed by the amended law.
