DZP has represented clients from the light industry in a dispute with the tax authorities. The dispute concerned the tax consequences of restructuring activities carried out in the first half of 2016 related to the sale of shares in a capital company by its shareholders. The total amount of the shareholders' tax arrears was almost PLN 10.5 million (excluding interest).

Our clients, who are shareholders in a capital company, carried out a business restructuring in several stages, which included an exchange of shares between domestic entities. All the elements of the restructuring were implemented before 15 July 2016, when the anti-tax avoidance rules (GAAR) came into effect.

Thanks to the measures taken by DZP, the tax authority twice overturned its own first-instance decisions, the second time discontinuing the proceedings in the case. The authority upheld the allegations raised in the appeal and their grounds in full. It thus confirmed that the transfer pricing regulations in force on the transaction date did not allow its tax consequences to be challenged, as they could not be applied as a so-called narrow anti-avoidance clause. The decision is final.

The client was supported throughout the case by Joanna Wierzejska and Artur Nowak, Co-managing Tax Practice Partners, Paweł Suchocki, Senior Tax Manager, and Adrian Gurec, Tax