Current Report No.: 40/2022
The Management Board of Boryszew S.A. (Company, Issuer) advises that regard to the ongoing proceedings on the reliability of the declared tax bases and the correctness of calculation and payment of the tax on goods and services for the period December 2015 to March 2016, against Boryszew S.A. Boryszew ERG branch in Sochaczew (Boryszew ERG Branch), on 3 August 2022 the Company received the Result of Audit of the tax books.
In the Audit Result received on 3 August 2022, the Head of the Mazovian Customs and Tax Office in Warsaw stated that Boryszew ERG Branch had failed to exercise due diligence in documenting transactions, which was recognised by the Authority as irregularities in the settlement of the tax on goods and services.
The Head of the Mazovian Customs and Fiscal Office in Warsaw questions, in the Audit Result submitted to the Company, the right to apply 0% rate in intra-Community deliveries of goods to foreign entities and indicates that, given the facts, these deliveries should be taxed at 23% rate of the tax on goods and services in the period between December 2015 and March 2016 in the amount of PLN 9 817 220.
According to the National Revenue Administration Boryszew S.A. also wrongfully deducted input VAT from invoices issued for the purchase of rapeseed oil, in the period December 2015 to March 2016, thereby overstating it by a total amount of PLN 12 435 798.
The total amount of the overdue the tax for the above transactions is PLN 22 253 018 plus interest due.
Despite the entitlement of Boryszew S.A. to correct the submitted declarations in accordance with the findings of the Audit Result within 14 days of the date of delivery of the Audit Result, the Company intends to challenge these findings in the tax proceedings.
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.