Mid February 2024 saw the end of the application window for the 2023 governmental programme of gas and electricity price support for energy-intensive industries called Pomoc dla przemysłu energochłonnego związana z cenami gazu ziemnego i energii elektrycznej w 2023 r. The programme is designed to provide financial aid to energy-intensive businesses which are under threat due to the quick growth in electricity or natural gas purchase prices.
While taxpayers are eager to apply for the aid, they continue to be uncertain if it will be taxable income for them. They believe the money received under the programme from the Indirect Emission Cost Compensation Fund is a grant from the central government’s budget which is exempt from tax. In contrast, tax authorities consistently claim such money does not fall within this exemption.
Fortunately, courts are siding with taxpayers. Judgments in their favour have so far been given by Provincial Administrative Courts in Warsaw (case no. III SA/Wa 2358/23), Kielce (case no. I SA/Ke 488/23), Cracow (case no. I SA/Kr 797/23), Poznań (case no. I SA/Po 664/23), and Wrocław (case no. I SA/Wr 771/23).
The controversy will be finally resolved by the Supreme Administrative Court. But because the top court took the taxpayers’ side in relation to similar governmental programmes (e.g. compensation from the energy regulator in respect of emission allowance costs included in electricity prices for energy-intensive sectors and subsectors), we hope for a favourable outcome in present case as well.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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