Current Report No.: 12/2020

Date of preparation: 13.03.2020

Abbreviated name of the Issuer: CIECH S.A.

Subject: Cessation complaints filed by the Director of the Tax Administration Chamber in Bydgoszcz against judgements of the Regional Administrative Court in Bydgoszcz 

Legal basis: Art. 17.1 of the MAR – inside information

Report:

The Management Board of CIECH S.A. (the “Company”) informs that today the Attorney for CIECH Soda Polska S.A., CIECH Cargo sp. z o.o. and CIECH Pianki sp. z o.o. (hereinafter jointly referred to as the “Subsidiaries”) has received copies of cassation complaints submitted to the Supreme Administrative Court by the Director of the Tax Administration Chamber in Bydgoszcz (hereinafter referred to as the “DIAS”) against the judgements of the Regional Administrative Court in Bydgoszcz of 11 December 2019 (hereinafter referred to as the “Judgments” and “WSA” respectively), in which the WSA annulled the decisions of the DIAS of 27 August 2019 (hereinafter referred to as the “Decisions”) relating to tax arrears of the Subsidiaries due to Corporate Income Tax for 2015 in the total amount of PLN 8.2 million. A provision for the amount of the tax liability was created earlier. The Company informed about the Judgments in its Current Report No. 49/2019 of 11 December 2019, and about the creation of the provision in its Current Report No. 24/2019 of 27 June 2019.

In the submitted complaints, the DIAS requested that the appealed Judgements be annulled and the complaints of the Subsidiaries against the Decisions of the DIAS be dismissed, or, alternatively, that the appealed Judgements be annulled and the cases be referred to the WSA for their reconsideration. 

The Company informed about the pending cases in its Current Reports numbers:

1. 22/2019 of 6 June 2019 – information on the decisions of the 1st Instance Authority; 
2. 24/2019 of 27 June 2019 – information on creating a provision for income tax and recognising a write-down for a deferred tax asset and recognising a provision for late payment interest;
3. 38/2019 of 9 September 2019 – information on the Decisions;
4. 49/2019 of 11 December 2019 – information on the Judgements repealing the Decisions.

Legal basis: Article 17.1 of the Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).

Signatures of the Company’s representatives:

Dawid Jakubowicz – President of the Management Board 

Mirosław Skowron - Member of the Management Board