Current report no: 48/2021
With reference to the current report No 29/2020 of 25 September 2020 regarding the decision of the tax authority on overdue tax in a subsidiary and information in the most recent interim report, the Management Board of Boryszew S.A. (“Issuer”, “Company”) informs that on 25 November 2021 ZM SILESIA S.A. (“ZM SILESIA”) – a subsidiary of the Issuer – received a decision of the Head of the Fiscal Administration Chamber in Katowice, sustaining the decision of the Head of Małopolska Customs and Tax Office in Kraków of 24 September 2020, determining outstanding VAT liability of ZM SILESIA S.A. for 2013-2014 at PLN 97.3 million, plus due interest.
According to the Head of the Chamber ZM SILESIA failed to exercise due diligence in verifying the tax reliability of some of its suppliers, who, as it turned out, failed pay the due VAT to the state budget. As a result, according to the Camber, ZM SILESIA S.A. should not have reduced its output tax by the input tax shown on invoices issued by dishonest contractors.
This decision is final. Following different assessment of the above circumstances, the Company intends to appeal against that decision to the Provincial Administrative Court.
According to the Management Board of the Issuer, risks associated the decision are recorded in the Issuer’s books of accounts as on-balance sheet and off-balance sheet provisions. Given the above, as at the date of this announcement, the fact of this decision being issued does not require the Issuer to make any additional one-off accounting entries.
About other important events related to the above-mentioned court and administrative proceedings, the Company will provide information in relevant 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.