Current Report No.: 26/2023
The Management Board of Boryszew S.A. (“Company”, “Issuer”), with reference to the current report no. 41/2022 of 5 August 2022 on the audit of reliability of the declared tax bases and the correctness of calculation and payment of the tax on goods and services in Boryszew S.A. Boryszew ERG branch in Sochaczew, advises that on 10 November 2023 it received a decision of the Head of the Mazovian Customs and Fiscal Office (“Office”) in Warsaw, of 27 October 2023, determining the Company’s outstanding VAT liability for the period December 2015 to March 2016 in the amount of PLN 23.03 million plus interest due for overdue tax.
According to the position of the Office, the Company should not have reduced its output tax by the input tax shown on invoices issued by some contractors who were alleged to have been involved in a chain of transactions with the aim of effecting tax evasion. At the same time, the Office stated that Company had not acted with the so-called ‘good faith’, which would nevertheless help them maintain the right to deduct input tax despite the occurrence of tax irregularities at earlier stages of the disputed supplies.
In addition, the Office questioned the Company’s right to apply a 0% VAT rate to intra-Community supply of goods transactions, resulting in these transactions being subject to a 23% VAT.
For the tax risk arising from the aforementioned proceedings the Company recognised a provision in 2022 in the amount of PLN 30.3 million.
The decision in question is non-final and not enforceable. Given the different assessment of the above circumstances, the Company will use the available appeal means to challenge the above decision of the Office.
Legal grounds
Art 17 section 1 MAR – confidential information.
Signatures:
Wojciech Kowalczyk – President of the Management Board