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Banks face another headache

Boglárka Zsibrita | 30 January 2017
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Boglárka Zsibrita

Financing banks only had a short time to make use of the collateral structures transformed due to the revised pledge rules of the new Civil Code. A resolution recently passed by the Highest Court presents banks with a new challenge: financiers will, again, need to reconsider the collateral structures that have been developed and used over the years.

Dividends: a blessing or a curse?

Ágnes Bejó | 5 January 2017
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Ágnes Bejó

While dividends are the result of a happy process, namely the profitable operation of one’s business, the restrictions and difficulties associated with dividend payment have always given grounds for frustration. Particularly troublesome is the treatment of dividends in the course of corporate acquisitions, as the buyer and the seller need to elaborate special techniques for sharing the dividends among themselves. 

Hungary makes a brave move in international tax competition

Ádám Fischer | 14 December 2016
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Ádám Fischer

While Hungary has long been a preferred place in international tax planning, with a flat 9% corporate tax rate recently introduced, the country has arrived to the forefront of the competition. Adding also the absence of withholding taxes, the participation exemption both on portfolio holdings and intellectual properties, coupled with all benefits of an EU–compliant tax legislation, Hungary is destined to become a popular place for tax experts.

Financial investors in jeopardy

| 1 December 2016
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A cartel case of key importance is currently awaiting a decision from the General Court of the European Union (GC). If the GC approves the decision of the European Commission, this will open the door for declaring financial investors liable, under cartel law, for the illegal practices of businesses in their portfolio companies, regardless of whether or not the investor was aware of the cartel activities.

Last nail in the coffin for the tax authority

Ádám Fischer | 29 November 2016
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Ádám Fischer

In its latest decision, the European Court of Justice (ECJ) has ruled that the Hungarian tax authority (NAV) unlawfully refused to allow VAT deduction to taxpayers who could not have known that the invoice’s issuer was implied in tax fraud. A special twist in the so-called Signum case is that it was the court of first instance who referred the case to the ECJ, as opposed to the guidelines of Hungary’s supreme court. The decision will have a significant bearing on ongoing tax audits and tax-authority findings, especially in the agricultural and trade sectors.

Tags:
EU, tax audit, VAT

‘Au naturel’, or packaged within a company? – The dilemmas of buying property

Ákos Baráti | 10 November 2016
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Ákos Baráti

Back in the day, buyers and sellers were better off selling shares in a company with possession of the property, rather than the property itself; but over the years, legislators have chipped away steadily at the benefits of acquiring property through a company purchase. Contrary to common belief, however, buying real estate through a company can still bring a number of tax advantages; and the range of these is set to expand from January of next year.

Porcelain tax? Icing sugar tax? Vacuum cleaner tax?

Péter Barta | 12 October 2016
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Péter Barta

Don’t worry! There aren’t any such taxes for the time being. But we do have taxes on tasteless buildings, boat tax, pony tax, telephone mast tax, tractor tax, and even arable land tax – just to mention a few of the municipal taxes that add spice to our everyday lives. We aren’t completely defenceless, however, if the local authorities do try and levy any of these taxes on us.

The blessing of the auditor is no guarantee

Ádám Fischer | 6 September 2016
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Ádám Fischer

As it is commonly known, the calculation of the corporate tax liability of Hungarian enterprises is based on the accounting figures. But a nasty surprise could lie in store for those who believe that they can apply the principles of accounting recognition fully in the course of calculating corporate tax.

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The law is constantly in flux. While many people may find this intimidating, for us it’s precisely what makes it so exciting. We’d like to share this attitude with businesspeople and managers, and with those who just have an interest in business law, in the form of a regularly updated blog that discusses the latest tax law and commercial law issues in an accessible style. Feel free to send your questions and suggestions for topics you’d like us to cover to blog@jalsovszky.com.

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