Supreme Administrative Court win in case over CIT

The Tax Practice has successfully represented the client in a dispute in administrative courts over the amount of CIT liabilities for 2009. 

In its judgment of 28 May 2019 in case no. II FSK 575/18, the Supreme Administrative Court dismissed the authority’s last resort appeal against the judgment of the Voivodship Administrative Court (VAC) in Warsaw, which was favourable for the taxpayer. The above judgment finally ended the dispute with the tax authorities, which had lasted since mid-2015. The outcome of the win in the administrative courts is the obligation for the authorities to refund to the taxpayer the tax paid plus interest.

The tax authorities at both instances had questioned the taxpayer’s right to treat as tax costs expenditure documented by invoices issued by one of its business partners. The authorities stated that the invoice issuer could not have performed the services indicated on the invoices and thus that they were unreliable documents which did not entitle the taxpayer to include the amounts invoiced in tax costs. Consequently, the tax authorities set the taxpayer tax arrears, which were paid with interest.

In representing the client, DZP filed an appeal with the VAC in Warsaw, which upheld the attorneys’ arguments and in a judgment of 6 September 2017 case no. III SA/Wa 2872/16 not only set aside the decisions passed by both instance authorities, but also discontinued the tax proceedings. A last resort appeal was filed against the judgment by the Director of the Revenue Administration Chamber in Warsaw.

The case was conducted by DZP lawyers Artur Nowak, Partner co-managing the Practice, and Paweł Suchocki, Tax Manager, from the Tax Practice.