End of a nearly six-year dispute over CIT

We represented the client in a dispute with the tax authorities over corporate income tax that started at the end of 2013 and involved tax arrears plus interest of almost PLN 2 million.

As part of its business, the taxpayer acquired services from a business partner, thanks to which it expanded its client base and was provided with logistics services. As a result of the proceedings, the tax authorities found, however, that the taxpayer could not treat the expenditure incurred in acquiring these services as tax costs, as there was doubt as to whether the services had actually been performed. Consequently, the tax authorities set the taxpayer tax arrears, which were paid plus interest (in total, almost PLN 2 million).

On 2 July 2019, the Supreme Administrative Court upheld the last resort appeal filed by the client’s attorneys from DZP’s Tax Practice and issued a judgment (case no. II FSK 1668/18) in which it not only set aside the appealed judgment of the Voivodship Administrative Court in Warsaw, but also overturned the decisions of both instance authorities and discontinued the tax proceedings.

The Supreme Administrative Court’s judgment is final and has ended the nearly six-year dispute with the tax authorities and resulted in the taxpayer recovering the unduly paid tax arrears plus interest.

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