In a recently published decision, dated 25 January 2013 (No. 5 Afs 56/2012), the Supreme Administrative Court upheld its earlier jurisprudence that unrealized foreign exchange gains were not taxable. Background The taxpayer, MP Development, was a joint-stock company resident in the Czech Republic. The taxpayer had initially included unrealized foreign exchange gains in its 2007 taxable income. Subsequently, the taxpayer filed an appeal against its 2007 assessment arguing that the unrealized foreign exchange gains were not taxable. In particular, the taxpayer referred to the jurisprudence of the Supreme Administrative Court to support its conclusions. The appeal was rejected by the...