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Tax and acquisition of debt belonging to the shareholder by the company

The Supreme Administrative Court in its judgment of 18 January 2017 (II FSK 3783/14, II FSK 4061/14), held that, in the case of a transfer of debts of the shareholders of overt by the company, the partners in the income arises. Facts of the case concerned a loan granted by the company with limited liability of its shareholders. Later the debt was transferred by the shareholders without remuneration, for general partnership in which they were the only partners.

The tax authority noted the absence of the obligation to pay the shareholders a tax on inheritance and donations. He noted that the rise in shareholder income from which to pay the tax. Regional Administrative Court in Gdansk and the Supreme Administrative Court confirmed the position of tax authorities, arguing that the fact that the partners of a general partnership should recognize revenue, because the transfer of debt the effect of releasing them from the debt.

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