Act No. 319 / 2006 Coll.
Act on certain measures for the transparency of financial relations in the field of public aid and amending Act No. 235 / 2004 Coll., on Value Added Tax, as amended
Valid
Law
Effective from 15.07.2006
319
THE LAW
of 25 May 2006
on certain measures for the transparency of financial relations in the field of public aid and amending Act No. 235 / 2004 Coll., on Value Added Tax, as amended
Parliament has decided on this law of the Czech Republic:
CERTAIN MEASURES TO PROVIDE FINANCIAL RELATIONS IN THE FIELD OF PUBLIC AID
This law incorporates the relevant provisions of the European Community1) and regulates certain rights and obligations of persons controlled by public administrations and persons charged separately to ensure the transparency of financial relations between them and public administrations in the field of public aid, as well as the procedure of the Office for the Protection of Competition 2) (hereinafter the Office) in these matters.
For the purposes of this Act:
(a) a public administration body of the State, a local authority as well as a natural or legal person in so far as it exercises competence in the field of public administration;
(b) a person controlled by a public administration body, in so far as he or she is involved in or may influence competition by his or her activities and whose activities public authorities may exercise, directly or through another person or persons, decisive influence; it is deemed to have a decisive influence on the relationship where a public administration body may influence the activities of that person through the rules governing that person, or the relationship where a public administration body is a majority member, holds a majority of voting rights or may enforce the appointment, election or removal of a majority of persons who are a statutory body or a member thereof, or a majority of persons who are members of a supervisory body of a legal person;
(c) a person controlled by a public administration body operating in the processing industry by a public administration body whose activity, representing at least 50% of the annual total net turnover (3), falls within the processing industry (4);
(d) a person accounting separately for a natural or legal person, if he or she is involved in or may influence his or her activities, who has special or exclusive rights granted by a public authority and who, at the same time, carries out other activities or provides other services, or who has been entrusted with the provision of services of general economic significance (5) and who receives compensation in whatever form for the provision of such services and who also carries out other activities or provides other services;
(e) the exclusive right to pursue an activity or to provide a service within a defined territory granted by a public administration body to only one person;
(f) by a special right the right to pursue an activity or to provide a service within a defined territory granted by a public administration body other than on the basis of objective, proportionate and non-discriminatory criteria which is granted to a limited number of persons, or which confers an advantage on one or more persons which could significantly jeopardise the ability of another person to carry out that activity or to provide that service.
(1) A person controlled by a public administration body records data on public aid and other resources provided to it by public authorities directly or through another person or person ("public funds"). The record shall contain information on:
(a) the person who provided the public funds;
(b) the legal facts or reasons for granting public funds;
(c) the amount of public funding provided;
(d) the purpose for which public funds have been granted;
(e) the use of public funds.
(2) Public funds provided under paragraph 1 shall be deemed to have been:
(a) compensation for losses;
(b) contributions to share capital and other equity funds which constitute equity;
(c) subsidies, repayable financial assistance and loans granted on favourable terms;
(d) waiving the right to a share of the profits or waiving recovery;
(e) waiving the right to normal return on public funds provided;
(f) remission of tax or tax accessories;
(g) other similar means.
(3) Paragraph 1 shall not apply to persons controlled by public authorities:
(a) for which, for the two financial years immediately preceding the financial year in which the public funds were granted, the annual total net turnover did not exceed EUR 40 000 000;
(b) providing services for which trade between Member States of the European Communities cannot be significantly affected; or
(c) which are entitled to receive deposits from the public and to grant loans for their own account;
1. for which, for the two financial years immediately preceding the financial year in which the public funds were granted, the assets did not exceed, in total, EUR 800 000; or
2. where deposits by public authorities are placed in them under normal commercial conditions.
(4) A person controlled by a public administration body shall be required to keep registered data on public funds for a period of 5 years from the end of the financial year in which the public funds were provided. Where public funds have also been used during the next accounting year, the five-year period shall not start until the end of that accounting year.
(5) The person controlled by a public administration body shall provide data on public funds registered in accordance with Article 3 at the request of the Office within a time limit set by the Office which shall not be less than 15 working days. The Office shall extend the period during which it is to be applied for if there are serious reasons for the extension.
(6) The data obtained under paragraph 5 shall be submitted by the Office to the Commission of the European Communities (hereinafter referred to as "the Commission") at its request.
(1) A person controlled by a public authority operating in the processing industry (4) whose annual total net turnover over the preceding financial year is higher than the amount corresponding to EUR 250 000 000 shall be obliged to submit to the Office the annual report (6), the sound financial statements (7) and the minutes of the general meetings held during that financial year, and, if not contained in them, shall also submit data on:
(a) changes in capital and other equity funds and the indication of the associated conditions, in particular information on the type, form and form of shares, separately transferable rights, provisional certificates and bonds;
(b) subsidies and repayable financial assistance;
(c) loans granted by public authorities to a person controlled by a public administration body, including the specification of the interest rate, conditions and collateral of loans;
(d) the provision of credit to a person controlled by a public administration body, including a specification of the conditions under which the collateral was provided;
(e) the profit and loss interests paid out,
(f) other means provided by public authorities to a person controlled by a public administration body operating in the processing industry;
including the relationship between the parties to the transactions.
(2) A person controlled by a public authority operating in the processing industry (4) whose annual total net turnover over the immediately preceding financial year is greater than the amount corresponding to EUR 250 000 000, which draws up consolidated financial statements (8), is required to submit to the Office an annual report, accounts, general meetings records and the data referred to in paragraph 1 also for the consolidation unit. This shall be without prejudice to the obligation for the entities of the consolidation unit to submit the annual report, the accounts, the general meeting records and the data referred to in paragraph 1 separately. In cases where a person controlled by a public administration body operating in the processing industry (4) draws up consolidated financial statements (8) and consolidated accounts9) operate in the same or closely related sectors, the annual report, financial statements, general meetings and the data referred to in paragraph 1 may only be submitted to the Authority for consolidation total10).
(3) The annual report, the accounts, the minutes of the general meetings and the information referred to in paragraph 1 shall be submitted to the Office within 10 working days of the date of publication of the accounts and the annual report. The Authority shall forward this information to the Commission within 15 working days of the date of publication of the accounts and the annual report.
(4) Where a person controlled by a public administration body operating in the processing industry (4) is not obliged to publish the accounts and the annual report, he shall be required to submit the annual report, the accounts, the general meeting records and the data referred to in paragraph 1 to the Office within 8 months of the end of its accounting year. The Office shall forward this information to the Commission within 9 months of the end of the accounting year of that person.
(5) A person controlled by a public authority operating in the processing industry (4) whose annual total net turnover over the previous financial year exceeds EUR 250 000 000 is required to notify the Office of its amount within 2 months of the end of the accounting year concerned. A person controlled by a public administration body operating in the manufacturing industry shall, at the request of the Office, provide further information necessary to fulfil the obligations under this Act within a time limit set by the Office which shall not be less than 15 working days. The Office shall extend the period during which it is to be applied for if there are serious reasons for the extension.
(6) The Office shall record and provide the Commission with an updated list of persons controlled by public administrations operating in the manufacturing industry whose annual total net turnover during the previous financial year exceeds EUR 250 000 000 and their annual total net turnover on 31 March of the calendar year.
(1) Persons accounting separately shall keep accounts under the Accounting Act and draw up a timetable so that the accounts include a breakdown of the items by activity related to special and exclusive rights or services of general economic importance which have been entrusted to the person accounting separately and by other activities covered by it; This is without prejudice to the obligation to keep accounts under special legislation11). The person accounting separately shall indicate in the schedule of accounts cost and revenue accounts relating, on the one hand, to activities related to special and exclusive rights or services of general economic interest and, on the other hand, to other activities he deals with. The person accounting separately shall specify the content of such accounts by internal regulation.
(2) Paragraph 1 shall not apply to persons accounting separately:
(a) for two financial years immediately preceding the accounting year in which they were granted a special or exclusive right or a entrusted service of general economic interest, the total annual total net turnover did not exceed EUR 40 000 000 or, in the case of persons who are separately liable to receive deposits from the public and to grant loans for their own account, the assets did not exceed EUR 800 000;
(b) providing services for which trade between Member States of the European Communities cannot be significantly affected; or
(c) providing services or carrying out activities covered by specific legislation12); the obligation to charge separately shall not affect the obligations arising out of the Treaty establishing the European Community or other provisions of the European Communities.
(3) The person accounting separately shall, at the request of the Office, demonstrate compliance with the obligation referred to in paragraph 1 in particular by submitting the accounting schedule and internal rules referred to in paragraph 1, within a time limit set by the Office which shall not be less than 15 working days. The Office shall extend the period during which it is to be applied for if there are serious reasons for the extension.
(4) The data obtained under paragraph 3 shall be submitted by the Office to the Commission at its request.
(1) A person controlled by a public administration body, if not a legal person referred to in Article 3 (3), commits an offence by not recording the data on public funds referred to in Article 3 (1) or by not storing the registered data on public funds pursuant to Article 3 (4) or by not providing them pursuant to Article 3 (5).
(2) A person controlled by a public authority operating in the processing industry (4) whose annual total net turnover over the immediately preceding financial year is greater than the amount corresponding to EUR 250 000 000 commits an infringement by:
(a) not submit the annual report or the sound financial statements or the minutes of the general meeting or the information referred to in Article 4 (1) (a) to (e) within the period laid down in Article 4 (3) or (4); or
(b) not submit the annual report or accounts or the minutes of the general meetings or the data referred to in Article 4 (1) (a) to (e) within the time limit laid down in Article 4 (3) or (4) for consolidation totals10) if it draws up consolidated financial statements (8).
(3) A legal or business natural person shall, as a person accounting separately under Section 5, if not for a legal or business natural person referred to in Section 5 (2), commit an offence by failing to comply with the obligations under Section 5 (1).
A fine of up to 600,000 CZK shall be imposed for the offence referred to in Section 6.
(1) The limitation period shall be 10 years.
(2) The Office shall discuss transfers under this law.
(3) At least one authorised official involved in the infringement proceedings conducted by the Office at each stage must have at least a university degree in the master's study programme in the field of university in the Czech Republic. The provisions of the law governing infringement procedures relating to the training requirements of authorised officials shall not apply to infringement proceedings which the competent authority is responsible for under this law.
(4) For the procedure of the Office under this Law, the provisions of § 24 to 27, 32, § 39 (b), § 42, 43, § 44 (d), § 68 (b), § 70, § 80 (2) and (3), § 82 (1) of the first sentence of § 87, 89, § 93 (1) (d), (f), (g) and (h), § 93 (3), § 95 (3), § 96 (1) (b), § 96 (3) and § 98 (2) of the Act on the liability of misconduct and proceedings thereof shall not apply.
(1) The Office shall check that the person fulfils the obligations under this Act in a proper manner. This check is carried out by the Office in accordance with a separate legislation14).
(2) The Office shall negotiate with the Commission and shall ensure the necessary synergies with other institutions of the European Communities in the field of ensuring obligations under this Law.
(3) Staff members assigned to the Office are required to remain silent on the facts of the trade secret (15), which they have become aware of in the performance of their duties, even after the termination of employment.
For the conversion of EUR into Czech crowns for the purposes of this part of the Act, the foreign exchange market rate declared by the Czech National Bank on the day on which the balance sheet date is 7) of the relevant accounting year shall be used.
This part of the Act does not apply to the Czech National Bank.
The provisions of this part of the Act shall apply for the first time in the financial year starting in 2007.
Amendment to Act No. 235 / 2004 Coll., on Value Added Tax
In Annex 1 to Act No. 235 / 2004 Coll., as amended by Act No. 635 / 2004 Coll., Act No. 669 / 2004 Coll., Act No. 124 / 2005 Coll., Act No. 215 / 2005 Coll., Act No. 217 / 2005 Coll., Act No. 377 / 2005 Coll., Act No. 441 / 2005 Coll., Act No. 545 / 2005 Coll. and Act No. 109 / 2006 Coll., paragraph 1 reads:
| „Číselný kód Harmonizovaného systému popisu číselného označování zboží | Název zboží |
| 01-23, 25 | Potraviny včetně nápojů (vyjma alkoholických, vymezených zvláštním právním předpisem70)), živá zvířata, semena a rostliny, a přísady případně krmiva; voda. Mimo zboží zařazeného do číselných kódů: 2203-2208“. |
Zaoralek v. r.
Klaus v. r.
Paroubek v. r.
1) Directive 80 / 723 / EEC of 25 June 1980 on the transparency of financial relations between Member States and public undertakings and on financial transparency within certain undertakings, as amended by Directive 85 / 413 / EEC of 24 July 1985 amending Directive 80 / 723 / EEC on the transparency of financial relations between Member States and public undertakings and as amended by Directive 93 / 84 / EEC of 30 September 1993 amending Directive 80 / 723 / EEC on the transparency of financial relations between Member States and public undertakings and as amended by Directive 2000 / 52 / EC of 26 July 2000 amending Directive 80 / 723 / EEC on the transparency of financial relations between Member States and public undertakings.
2) Act No. 273 / 1996 Coll., on the jurisdiction of the Competition Authority, as amended.
3) Paragraph 20 (1) (a) of Act No. 563 / 1991 Coll., on Accounting, as amended by Act No. 353 / 2001 Coll. and Act No. 437 / 2003 Coll.
4) Chapter D - Processing sector (sub-chapter DA to DN) of NACE Rev. 1 of the Annex to Council Regulation (EEC) No 3037 / 90 of 9 October 1990 on the statistical classification of economic activities in the European Community.
5) Article 86 (2) of the Treaty establishing the European Community. For example, Sections 18 and 19 of Act No. 29 / 2000 Coll., on Postal Services and on the Amendment of Certain Laws (Act on Postal Services), § 3 (1) (a) of Act No. 231 / 2001 Coll., on the Operation of Radio and Television Broadcasting and on the Amendment of Other Laws, Act No. 127 / 2005 Coll., on Electronic Communications and on the Amendment of the Act No. 77 / 2002 Coll., on the Civil Society of the Czech Railways, Act No. 111 / 1994 Coll., Act No. 266 / 1994 Coll., on Railways, as amended, and Act No. 77 / 1997 Coll.
6) § 21 of Act No. 563 / 1991 Coll., as amended by Act No. 437 / 2003 Coll.
7) Article 19 of Act No. 563 / 1991 Coll., as amended by Act No. 492 / 2000 Coll., Act No. 353 / 2001 Coll. and Act No. 437 / 2003 Coll.
8) § 22 of Act No. 563 / 1991 Coll., as amended by Act No. 353 / 2001 Coll. and Act No. 437 / 2003 Coll.
9) Paragraph 22 (2) of Act No. 563 / 1991 Coll., as amended by Act No. 353 / 2001 Coll. and Act No. 437 / 2003 Coll.
10) Paragraph 22 (3) of Act No. 563 / 1991 Coll., as amended by Act No. 353 / 2001 Coll. and Act No. 437 / 2003 Coll.
11) Act No. 563 / 1991 Coll., as amended.
12) For example § 86 of Act No. 127 / 2005 Coll.
14) Act No. 552 / 1991 Coll., on State Control, as amended.
15) Article 17 of Act No. 513 / 1991 Coll.
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Regulation Information
| Citation | Act No. 319 / 2006 Coll., on certain measures to clarify financial relations in the field of public aid and amending Act No. 235 / 2004 Coll., on Value Added Tax, as amended |
|---|---|
| Regulation Type | Law |
| Author | - |
| Collection | Code of Laws |
| Date of Promulgation | 30.06.2006 |
|---|---|
| Effective from | 15.07.2006 |
| Effective until | - |
| Status | Valid |
The regulation text is for informational purposes only.
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