Judgments of the Supreme Administrative Court (NSA) in Warsaw.

Current Report No.:  46/2022

Date of preparation: 14.12.2022

Abbreviated name of the Issuer: CIECH S.A.

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

Subject: Judgments of the Supreme Administrative Court (NSA) in Warsaw.

 

Text of the report: 

The Management Board of CIECH S.A. (the “Company” or “Issuer”) informs that today the Supreme Administrative Court in Warsaw (the “NSA”) announced 3 (three) judgements in cases regarding CIECH Soda Polska S.A., CIECH Cargo sp. z o.o. and CIECH Pianki sp. z o.o.  (jointly as “Subsidiaries”), in which it dismissed the cassation appeals of the Director of the Tax Administration Chamber in Bydgoszcz (the “Second Instance Authority”). Thus, it upheld the judgments of the Provincial Administrative Court in Bydgoszcz (the “WSA") of December 11, 2019, repealing 3 decisions (the “Decisions”) of the Second Instance Authority of August 27, 2019. In the decisions issued by it, the Second Instance Authority challenged the right of the Subsidiaries to settle the tax loss due to participation in a partnership, an indirect subsidiary of the Issuer (“Partnership”) and determined the tax arrears of the Subsidiaries due to corporate income tax for 2015 in the total amount of PLN 8,2 million. 

With regard to the right to settle the loss on account of participation in the Partnership, which was challenged for 2015, in relation to the Subsidiaries mentions in this Report, analogous tax proceedings are also pending against other subsidiaries of the Issuer for 2015 and in relation to one of them – for 2016. 

The Issuer informed about these cases in its Current Reports Nos. 22/2019 of 06.06.2019, 38/2019 of 09.09.2019, 49/2019 of 11.12.2019, 12/2020 of 13.03.2020, 37/2021 of 02.12.2021, 22/2022 of 01.06.2022 and 42/2022 of 17.11.2022, and in Current Report No. 24/2019 of 27.06.2019, it informed about the recognition of a provision and a write-down on assets in connection therewith.

The tax liability specified in the Decisions in the amount of PLN 8,2 million, together with interest for late payment of PLN 2,3 million, was paid by the Subsidiaries to the relevant offices (hereinafter referred to as the “Offices”) in 2019, after they received the Decisions.

The judgments are final and cannot be appealed against. The Subsidiaries are waiting for the decisions of the Second Instance Authority in accordance with the judgments of the NSA, after which they should receive a refund of the overpaid tax liability, interest paid for late payment, interest for the period when the paid funds were at the disposal of the tax authorities and reimbursement of court fees. The Subsidiaries anticipate the aforementioned amounts to be reimbursed in 2023.

 

Signatures of persons representing the Company:

Dawid Jakubowicz – President of the Management Board

Jarosław Romanowski – Member of the Management Board

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