European court rules against Czech tax provisions

Part of the Czech tax law is at odds with European rules according to a decision issued Thursday by the European Court. The court said that Czech law wrongly forced companies employing workers hired through foreign based jobs agencies to pay taxes locally. If, however, the agency had a local branch in the Czech Republic then the agency itself paid the tax. The court said the rules amounted to a discrimination against foreign based agencies whose services were made less attractive to local firms and amounted to a certain limitation on the free movement of services.