We are pleased to inform you that advisors from the SK&S tax team, Sławomir Łuczak and Stanisław Gordziałkowski, obtained a precedent-setting judgment for our client confirming that interest paid as part of a so-called trade credit is not subject to restrictions resulting from thin capitalization. In the judgment of the Voivodship Administrative Court in Warsaw, handed down on 7 July 2017, the court set aside the negative decision of the tax authority and accepted that a trade credit does not constitute a ‘loan’ in the meaning of the provisions on thin capitalization, and interest paid in connection with this could constitute a cost in gaining revenue in full, in accordance with general rules.
