Warsaw — Pianki, the flexible foam subsidiary of Polish holding company Ciech, is challenging a ruling by a local tax office. A tax loss from a partnership that appeared in the 2015 accounts is at the heart of the trouble.
Other Ciech companies, including Soda Polska and Cargo, are involved in the process. Each subsidiary 'intends to take procedural steps' to defend its accounts.
At this stage, the tax decision is not enforceable. If the procedural attempt fails, then the subsidiaries will have to pay income tax totalling PLN 8.2m. There is also the possibility of late payment interest. On 6 June, this amounted to PLN 2.1m.
Across the business, other disputed tax payments could mean that Ciech is liable for PLN 19.6m. Interest to the value of approximately PLN 4.7m may also be due. Ciech said that all the details are contained in its latest consolidated financial statements .
Al the subsidies are now considering making provisions for income tax liabilities, the company said.