Rymarz Zdort Maruta represents bank in dispute before the CJEU regarding taxes for banks

We are pleased to announce that our firm is representing one of Poland’s leading banks in proceedings in which the Supreme Administrative Court has referred a question for a preliminary ruling to the Court of Justice of the European Union concerning the compatibility of the Polish rules on tax on certain financial institutions (the “banking tax” with the EU principle of the free movement of capital (Articles 63 and 65 of the Treaty on the Functioning of the EU).

The dispute concerns the rules for determining the banking tax base. Under the applicable rules, banks may reduce such base by the value of treasury bonds, but only those issued by the Polish State Treasury, and not by other European Union member states.

Our client has challenged that distinction, arguing that it discriminates against investment in bonds of other EU member states. The CJEU will determine whether such solution unjustifiably restricts the free movement of capital between member states.

“The court’s ruling may have an impact not only on this case but on the banking and insurance sector as a whole. The ruling will determine whether banks may be treated differently for tax purposes, depending on whose debt they invest in, and whether such structure can be reconciled with the free movement of capital in the EU,” says Leszek Tokarski, a partner heading the tax practice at Rymarz Zdort Maruta.

The client is represented by Leszek Tokarski (partner) and Artur Ciechomski (senior associate).