Tag: Comparable to a Bank Loan

Poland vs L S.A, June 2019, Supreme Administrative Court, Case No. II FSK 1808/17 - Wyrok NSA

Poland vs L S.A, June 2019, Supreme Administrative Court, Case No. II FSK 1808/17 – Wyrok NSA

A Polish subsidiary in a German Group had taken out a significant inter-company loan resulting in a significantly reduced income due to interest deductions. At issue was application of the Polish arm’s length provisions and the arm’s length nature of the interest rate on the loan. The tax authorities had issued an assessment where the interest rate on the loans had been adjusted and the taxable income increased. On that basis, a complaint was filed by the company to the Administrative Court. The administrative court rejected the complaint and ruled in favor of the tax authorities. An appeal was then brought before the Supreme Administrative Court. The Supreme Administrative Court rejected the appeal, although it did not share some of the conclusions and statements of the Court of first instance. The key issue in the case was to determine is whether the provisions of Art. 11 (Containing the Polish arm’s length provisions), allowing the authority to determine the income of ... Continue to full case
Poland vs Lender S.A, October 2013, Supreme Administrative Court, Case No II FSK 2297/11 - Wyrok NSA

Poland vs Lender S.A, October 2013, Supreme Administrative Court, Case No II FSK 2297/11 – Wyrok NSA

At issue in this case is the choice of method for determening interest rates on an intra group loan – More precisely whether or not internal comparables existed that were in fact independent. It is also discussed whether a intra group loan is comparable to a bank loan or not. Click here for translation II FSK 2297-11 - Wyrok ... Continue to full case