Clients represented by experts from the Tax Practice have won a dispute with the Head of the National Revenue Administration (NRA). The authority had questioned a restructuring related to the sale of shares in a capital company, alleging tax avoidance. The total amount of the shareholders’ tax arrears was almost PLN 8 million.  

DZP's clients, who are shareholders in the capital company, carried out a multi-stage restructuring of the business, which included the creation of an investment vehicle, an exchange of shares between domestic entities and the final sale of the shares. The restructuring was carried out in 2016, though some of the restructuring actions were initiated before 15 July, i.e. before the general anti-avoidance rules (GAAR) came into force, and the share sale took place after that date. 

In upholding the last resort appeal filed by the Tax Practice experts, the SAC overturned the judgment handed down by the Voivodship Administrative Court in Warsaw and the preceding decisions of the NRA Head issued in application of the GAAR. The SAC found that the rules could not be applied to the 2016 income tax settlements as it would violate the constitutional prohibition on changing tax regulations during the tax year (case nos. II FSK 2071/23 and II FSK 2072/23). 

The client was represented before the SAC by: Artur Nowak, Co-head Partner of the Tax Practice, and Tomasz Leszczewski, Counsel.