SRC Law Firm represented a client, who is one of the world’s leading food companies, before the Supreme Administrative Court.
The case concerned a tax interpretation unfavorable for the client regarding the definition of a building storey and its taxation with property tax.
At the stage of proceedings before the tax authority, the authority issued an interpretation stating that WEMA grating platforms constitute usable floor space, and therefore are subject to property tax. The above position was also supported by the Provincial Administrative Court.
As a result of the complaint filed by SRC, the Supreme Administrative Court issued a verdict favorable for our client, which repeals the above interpretation and states that the existence of a storey requires the existence of a ceiling constituting a structural element of the building permanently connected to it.
The ruling changes the current approach of courts and tax authorities to the taxation of a building surface. The Supreme Administrative Court accepted for the first time that it matters what the horizontal partition is made of. If from gratings, which do not perform the function of a ceiling, they do not constitute a floor of the building subject to taxation.
The case was conducted before the Supreme Administrative Court under the case number III FSK 230/22, and the client, on behalf of the SRC Law Firm, was represented by attorney Alicja Popłonkowska-Dębińska.
“The verdict of the Supreme Administrative Court is a breakthrough in tax interpretation regarding the definition of a building storey. It is a victory for our client and for many property owners in Poland” – said Łukasz Caban, partner in the SRC Law Firm.
