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10 October 2013
Ruling of the Voivodeship Administrative Court in Warsaw annuls the Decision of the Director of the Warsaw Tax Chamber regarding the Company's corporate income tax liabilities (41/2013)
The Management Board of Netia SA (the “Company” or “Netia”), Poland's largest alternative provider of fixed-line telecommunications services, announces that on 10 October 2013, given that previously the Supreme Administrative Court had upheld the cassation appeal brought by the Company, the Voivodeship Administrative Court in Warsaw reconsidered the case and delivered a judgment on the decision (the “Decision”) of the Director of the Tax Chamber in Warsaw (the “Tax Chamber Director”) pursuant to which Netia’s corporate income tax (“CIT”) due for the year 2003 was established at PLN 34.2 million plus penalty interest of approximately PLN 25.3 million (see current report 4/2010 dated 17.02.2010). The Decision was in turn a result of Netia’s appeal of a decision of the Director of the Tax Control Office in Warsaw (the “UKS Director”) pursuant to which Netia’s CIT due for the year 2003 was established at PLN 58.7 million plus penalty interest amounting to PLN 41.3 million (see current report 42/2009 dated 17.08.2009). Following the receipt of part of the amount of the tax paid by the Company from the fiscal authorities, Netia continues to seek the recovery of the remaining PLN 51.9 million, with interest.
In today’s judgment, the Voivodeship Administrative Court annulled the Decision in its entirety. In connection with the judgment so rendered, the Tax Chamber Director is required to reconsider the Company’s appeal against the Decision of the UKS Director, taking into account the legal assessment and recommendations contained in the judgments of the Voivodeship Administrative Court and the Supreme Administrative Court as to how to proceed with the matter.
The Voivodeship Administrative Court’s judgment is not final. Both the Company and the Tax Chamber Director are entitled to lodge a cassation appeal to the Supreme Administrative Court.
Accordingly, today's ruling of the Voivodeship Administrative Court represents a further step towards a potentially favorable to Netia conclusion of the dispute.
Legal basis: Article 56 Section 1 Item 1) of the Act of 29 July 2005 on Public Offering and Terms and Conditions of Introducing Financial Instruments to Organised Trading, and on Public Companies (Journal of Laws of 2005, No. 184, Item 1539).
In today’s judgment, the Voivodeship Administrative Court annulled the Decision in its entirety. In connection with the judgment so rendered, the Tax Chamber Director is required to reconsider the Company’s appeal against the Decision of the UKS Director, taking into account the legal assessment and recommendations contained in the judgments of the Voivodeship Administrative Court and the Supreme Administrative Court as to how to proceed with the matter.
The Voivodeship Administrative Court’s judgment is not final. Both the Company and the Tax Chamber Director are entitled to lodge a cassation appeal to the Supreme Administrative Court.
Accordingly, today's ruling of the Voivodeship Administrative Court represents a further step towards a potentially favorable to Netia conclusion of the dispute.
Legal basis: Article 56 Section 1 Item 1) of the Act of 29 July 2005 on Public Offering and Terms and Conditions of Introducing Financial Instruments to Organised Trading, and on Public Companies (Journal of Laws of 2005, No. 184, Item 1539).