Current Report No. 2/2025
Following current report No. 24/2024 of 2 June 2024 as well as earlier reports concerning the revocation of decisions of tax authorities against ZM SILESIA S.A. (hereinafter ZSM), Boryszew S.A. (Issuer, Company) advises that following the completion on 20 January 2025 of the review of the status of tax proceedings at ZMS, which the Issuer reported on through current and periodic reports, carried out for the purpose of the process of preparing the Issuer’s consolidated financial statements and annual report for 2024, the company reassessed the risks associated with these audits.
The reasoning in the written justifications of the judgments of administrative courts concerning ZMS tax proceedings for 2013-2014 and for the first half of 2015, indicating the high probability of the statute of limitations for ZMS tax liabilities and the instrumental use of the institution of suspension of the statute of limitations following the initiation of criminal and fiscal proceedings, justifies the Company’s position that the probability of a negative outcome for ZMS in these proceedings is low. At this point it is also important that the concurrent dispute regarding the statute of limitations on VAT liabilities for 2012 has already been finally resolved in favour of ZMS.
In the Issuer’s opinion, continuing to maintain provisions for ongoing ZMS tax proceedings, in view of the low probability of a negative outcome for ZMS in the aforementioned audits, would not fully reflect the Issuer’s current assessment of the impact of these audits on the Issuer’s situation. Consequently, this could mislead shareholders about the real impact of audits in which favourable judgments were issued for ZMS by courts of first instance on the Group’s consolidated financial results and asset. Accordingly, as a result of the updated assessment, the Issuer chose to dissolve and recognise in the Group’s profit or loss the remaining part of the provisions established for these audits in the total amount of PLN 73 million.
At the same time, as at the date of preparation of this current report, preparation of consolidated financial statements of the Capital Group for 2024 is still in progress and the amount of contingent liabilities related to the aforementioned tax audits (once it is finally determined) will be included in these statements, the publication of which is planned for 17 April 2025.
Legal grounds
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.