Current Report No.: 1/2023
The Management Board of Boryszew S.A. (“Issuer”) with reference to information disclosed in current and interim reports of the Issuer advises that on 2 January 2023 it received from the Issuer’s subsidiary – Hutmen Spółka z o.o. (Hutmen) information on the decisions of the Director of the Fiscal Administration Chamber in Wrocław
1) of 27 December 2022 determining overdue VAT liability of Hutmen for H1 ‘2015 in the amount of PLN 7.8 million, plus interest on outstanding tax liability.
2) of 28 December 2022 determining overdue VAT liability of Hutmen for Oct-Dec 2015 in the amount of PLN 3.0 million, plus interest on outstanding tax liability.
As claimed by the Office, HUTMEN did not act in so-called “good faith” by participating in the supply chain and consequently had no right to apply the VAT rate of 0% for the intra-Community supply of goods. To secure the implementation of the aforementioned decision, Hutmen paid deposits totalling PLN 16.4 million.
The decisions concerned are final. Following different assessment of the above circumstances, the Company intends to appeal against that decision to the Provincial Administrative Court.
At the same time the Issuer advises that due to the fact that the course of tax proceedings to which the Group companies are parties is prolonged in time, following the dismissal by administrative courts or tax authorities of issued decisions as a result of filed appeals or complaints against these decisions and the subsequent re-issue by tax authorities of similar decisions, which do not significantly affect the status of disputed tax liabilities, the Issuer has decided that in the current reports it will disclose only such information that will refer to a significant change in the current position of tax authorities as to the amount or enforceability of tax liabilities of individual companies, in particular with regard to events that will make it necessary to carry out significant one-time accounting operations as well as events that will make payments of disputed liabilities necessary. As for the rest, the Issuer will report on further significant events associated with the proceedings concerned in subsequent interim reports.
Legal attitude: Article 17 section 1 MAR – Confidential information.
Signatures:
Wojciech Kowalczyk – President of the Management Board
Translation from the original Polish version.
In the event of differences resulting from the translation, reference should be made to the official Polish version.