In the recent rulings from April and June 2016, the Supreme Administrative Court in Warsaw consented to our position on tax consequences of the liquidation of the joint stock partnership for the stockholders.
In the two aforementioned, simultaneous cases tax advisors from the JP Weber legal office requested a binding tax interpretation on whether in the situation when the joint stock partnership stockholders decide to liquidate the partnership (also in the variant after possible transformation of these partnerships into different partnerships), revenue of these stockholders will not include assets acquired from the liquidation of the partnership. It's worth mentioning that the matters regarded the legal state as at the end of December 2013, nonetheless they remain current in terms of liquidation of other partnerships which have been established, e.g. as a result of the transformation from the limited joint-stock partnership. In the opinion of our advisors in accordance with the literal interpretation of the provisions applicable at the time, the assets acquired from the liquidation of the partnership, including SKA, do not constitute revenue subject to income tax. Tax chambers in both cases did not agree with such opinion. Due to the ongoing proceedings, cases were ruled in two different administration courts, where, what is interesting - two different rulings were given. The court in Wrocław agreed with the proxies from JP Weber, whereas the court in Opole agreed with the Minister of Finance.
Finally, both cases ended up in the Supreme Administrative Court in Warsaw, the first due to the complaint in cassation filed by the representative of the Minister of Finance, and the other due to the complaint of cassation filed by the JP Weber proxies. Within a couple of months, the Supreme Administrative Court gave similar rulings based on which the court consented to the position of JP Weber tax advisors. In the event of liquidation of such partnerships, assets acquired by the stockholders do not constitute revenue subject to income tax.
The rulings of the Supreme Administrative Court ended disputes lasting nearly 3.5 years between taxpayers represented by JP Weber, regarding the existing doubts resulting from possible liquidation of partnerships, including SKA and tax consequences to their stockholders.