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Update: Court Rulings on Tax Issues
The Provincial Adminstrative Court (PAC), the Supreme Adminstrative Court (SAC) and the European Union Court (EU Court) have been hearing and judging on several cases focusing on tax issues. Taxand Poland looks into the results of the recent Court judgments which affect taxpayers.
Provincial Adminstrative Court
- Taxpayers carrying out VATable, VAT exempt and non-VATable activities settles the whole amount of input tax according to the proportion.
- Cash bonus granted for achieving a certain level of purchases constitutes a discount reducing taxable basis and should be documented with a correction invoice.
- Exchange of shares of limited liability companies which is effected by a partnership is neutral for CIT purposes.
- Expenditures related to restructuring process which result in increase of share capital may be considered as tax deductible in the part which is not directly related to this increase.
- Payment of bonus to employees from a company's net income for the previous year is non-deductible.
Supreme Adminstrative Court
- Purchase of receivables on taxpayer's own risk at the price lower than their nominal value does not constitute a chargeable service and in consequence, is not subject to VAT.
- Marketing, transport and maintenance activity conducted outside the special economic zone (SEZ), although related to business activity carried out within SEZ, is not exempt from taxation.
- Lease of real estate and the related services may be treated for VAT purposes as one complex service.