Large media company facing a legislative threat of additional tax

Our client entered an emotional debate with the promotion of Czech cultural heritage (prepared under the previous, tragically deceased and popular, minister) on one side and the mean interests of foreign multinationals on the other.

Task

An amendment to the Act on Czech Cinematography Fund has been submitted by the government with the stated purpose to promote Czech film production. The Lower House of Parliament has approved the Act in 1st reading. If the amendment had become a law, it would have imposed an additional tax on the client’s revenues. We were approached by the client to either kill the piece of legislation or amend it in a way that it would not represent a threat to the client’s business.

Solution

Our client entered an emotional debate with the promotion of Czech cultural heritage (prepared under the previous, tragically deceased and popular, minister) on one side and the mean interests of foreign multinationals on the other.
As we entered the debate at a late stage, we worked to delay the decision up untill shortly before the forthcoming general elections. we highlighted that not only this is an infelicitous solution to a lack of funds in the state budget but also that the soft rules for money allocation create a space for corruption. Based on sound arguments and united pressure of coalition partners, we worked towards prolonging the legislative process, to benefit from the lower turnover and lesser loyalty of MPs one week before the elections.

Result

The Lower House has not gathered sufficient majority to outvote the presidential veto and the legislation was rejected.

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