CIECH espi 2023-05-29 17:15

The Management Board of CIECH S.A. (the “Company” or “Issuer”) informs that it received today information from the proxy of the subsidiary - CIECH Sarzyna S.A. (hereinafter: "CIECH Sarzyna") on delivery of the final decision of the Director of the Tax Administration Chamber in Rzeszów (hereinafter: "DIAS in Rzeszów") issued in the proceedingregarding CIECH Sarzyna, repealing the decision of the Head of the Podkarpacki Tax Office in Rzeszów of November 4, 2022 and discontinuing the income tax proceeding for 2016 due to the expiry of the limitation period. The proceeding concerned the right to settle the tax loss of CIECH Sarzyna on the sale of shares in Ciech Cerium Sp. z o. o. Sp. K. (hereinafter: "Partnership"), the right to settle the tax loss of CIECH Sarzyna incurred in 2015 and the right to charge the trademark fee to tax expenses, as a result of which the tax arrears were initially determined for CIECH Sarzyna in the amount of PLN 4.7 million. As a consequence of the decision in question issued by the DIAS in Rzeszów, CIECH Sarzyna has no corporate income tax arrears for 2016.

CIECH Sarzyna expects that the paid tax in the total amount of PLN 4,7 million and late payment interest in the amount of PLN 0,8 million will be refunded to it, and it also expects the tax authorities to pay interest for the period when the paid amounts were at their disposal. It is expected that the amounts will be refunded in 2023.

The Issuer advised on matters concerning the right to settle the loss due to the share in the Partnership in its current reports Nos. 22/2019 of 6.06.2019, 38/2019 of 9.09.2019, 49/2019 of 11.12.2019, 12/2020 of 13.03.2020, 37/2021 of 02.12.2021, 22/2022 of 01.06.2022, 42/2022 of 17.11.2022, 46/2022 of 14.12.2022 and 33/2023 of 08.05.2023, and on the recognition of the provision and write-down on assets in connection with these matters in its current report No. 24/2019 of 27.06.2019.

As a result of the issued decision, the cases regarding the right to settle the loss on account of the share in the Partnership were finally successfully concluded in four subsidiaries, including CIECH Sarzyna, and were as in one subsidiary it is still pending.

The audits in  cases in question were described in Note 9.2 of the consolidated report of the CIECH Group for 2022 in the section “Audits of tax settlements in the CIECH Group and related contingent liabilities”.

Legal basis: Article 17.1 of Regulation of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on Market Abuse (the Market Abuse Regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (Official Journal of the European Union L No. 173, p. 1).