The Management Board of Boryszew S.A. (“Issuer”) announces hereby, following the current report No. 40/2018 of 12 March 2018 and information in interim reports of the Issuer, that on 26 April 2021 the Issuer’s indirect subsidiary – ZM SILESIA S.A. received the decision of the Head of the Fiscal Administration Chamber in Katowice (“Chamber”) dated 19 April 2021 determining overdue VAT liability of ZM SILESIA S.A. (“ZM SILESIA”) for 2012 in the amount of PLN 28.6 million plus interest on outstanding tax liability in the amount of approximately PLN 16 million.
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 a balance-sheet liability (value of liability resulting from the decision) and as a contingent liability (value of interest). 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.
Legal attitude: Article 17 section 1 MAR – Confidential information.
Andrzej Juszczyński – Vice President of the Management Board
Mikołaj Budzanowski – Member 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.