Poland vs K. Manufacturing sp. z o.o., June 2022, Supreme Administrative Court, Case No II FSK 2655/19

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Category: Losses, Services and Fees, Transfer Pricing Methods | Tag: , , , , , , , ,
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A Polish Subsidiary A SP. z o.o. had incurred a loss in 2012 in the amount of PLN 1,357,333.66 and following an audit the tax authorities issued an assessment whereby the loss was reduced by an amount of PLN 234,019.90.

The disputable issue was whether, in the circumstances of the case under consideration, the tax authorities correctly determined the amount of the applicant’s loss for 2012 in an amount other than that resulting from the correction of the declaration due to the finding that the Company undervalued income from transactions concluded with related entities for a total amount of PLN 234,019.90.

The Administrative Court dismissed the complaint of A SP z o.o.

An appeal was then filed with the Supreme Administrative Court-

Judgment

The Supreme Administrative Court overturned the decision and remanded the case for a re-examination.

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