Tax on one crown bonds gets government backing

A proposal from Minister of Finance and ANO leader Andrej Babiš to tax the earnings of one crown bonds issued by private companies was agreed by the government on Wednesday. The proposal was put forward by Babiš as a member of parliament in the lower house. The move would in theory introduce taxes on the bonds from the start of next year. Prime Minister Bohuslav Sobotka has cast doubts on whether the legislative steps can be taken before lower house elections in October for the proposed law to take effect. Babiš got into trouble for alleged tax dodging when it was revealed that he was the sole buyer of such tax free bonds which were issued by his company Agrofert in 2012. He has said the move was completely legal but later suggested taxes be re-imposed on such bonds.

Author: Chris Johnstone