(Old) new concept of prohibition of return of contribution to the registered capital and transfer pricing rules

Abstract

The aim of the contribution is to clarify and critically evaluate the purpose of the concept of prohibition of return of contribution to the registered capital introduced by the Act No. 87/2015 Coll. amending and supplementing the Act No. 513/1991 Coll. the Commercial Code as amended and its impact on liability in the company in the context of corporate regulations and transfer pricing rules. It appears that the transfer pricing rules, which are used in practice to determine the appropriateness of consideration in line with Section 67(5) of the Commercial Code, have several material distinct features rendering them only partially usable in the commercial law relationships and only with great level of care. The concept of prohibition of return of contribution should in the view of authors need to be refined in respect to the suitable methods.