Success of the Law Firm’s Clien

The liability of board members, of course, is not limited to criminal liability (so-called white collar crimes). The possibility of incurring tax liability, for example, can also be a threat to managers.

The Head of one of the Tax Offices in Kraków ruled on joint and several liability with the Company of our Client, as a member of the management board, for the Company’s tax arrears from years past, amounting to over PLN 1 million of the principal amount due with interest. The basis for the decision was Article 116 of the Tax Ordinance, which provides for joint and several liability of members of the management board of a limited liability company if enforcement against the company’s assets proves ineffective.

The authority found that there were grounds to transfer the tax liability for the company’s arrears (principal and interest) to the Client and, as is not difficult to guess, the authorities of both the first and second instance were not persuaded by the argumentation indicating, inter alia, defective enforcement proceedings.

As a result of the complaint filed by the Law Firm, the Voivodship Administrative Court in Krakow, accepting its arguments, declared the issued decisions null and void. In particular, the WSA in Kraków confirmed that the enforcement proceedings were conducted defectively, inter alia, due to the fact that the company’s assets were not examined thoroughly, defective notices were made, and that the tax liability may have become time-barred.

The case was worked on by advocate Bartłomiej Pietruszka and advocate Aleksandra Bobińska.