PCC on Company Transformation – A Difference of Millions
The Supreme Administrative Court (NSA) is still deliberating a case concerning one of the key issues for entrepreneurs: whether, during the transformation of a partnership into another partnership, the term “contributions” should be understood exclusively as contributions made by partners or also as assets acquired by the company during its operations.
The dispute carries significant financial implications, as differences in the interpretation of the regulations could result in multimillion-dollar discrepancies in the taxable base for civil law transactions tax (PCC).
Marcin Bodziony, a tax advisor and specialist in tax audits and proceedings at Thedy & Partners, commented on the matter for the legal portal Prawo.pl:
“Taxpayers had high hopes for this case. It seemed that the dispute over the PCC taxable base in transformations was practically resolved in favor of the tax authorities. Recently, the NSA issued several judgments aligning with their approach. The chance to reverse this negative trend emerged when the matter was referred to a seven-judge panel. This somewhat surprising move gave rise to speculation that the NSA might reconsider its stance. However, this ultimately did not happen.”
Although the NSA did not issue a resolution, the issue remains unresolved – both in Polish courts and potentially at the level of the Court of Justice of the European Union. As Marcin Bodziony emphasizes, the financial significance of the problem ensures that taxpayers will continue to contest it for a long time.