Loans granted by shareholders to capital companies in 2007 and 2008 should be exempt from taxation on civil law transactions. According to the verdict of the Regional Administrative Court in Warsaw dated September 11, 2009, in case ref. III SA/Wa 619/09, loans granted by shareholders to capital companies in 2007 and 2008 should be exempt from taxation on civil law transactions. In this judgment, the Court held that the regulations in effect in 2007 and 2008 on the taxation of such loans are inconsistent with the provisions of the Council Directive of July 17, 1969 concerning indirect taxes on the raising of capital (69/335/EEC). The ruling contains a favorable interpretation of tax regulations for taxpayers, which may prove valuable in disputes with tax authorities. If a limited liability company or joint-stock company receives such a loan and pays the tax on civil law transactions, taxpayers can apply to the tax authorities for a declaration of overpayment of this tax. Loans granted by shareholders to limited liability companies in 2007 and 2008 should be exempt from the tax on civil law transactions.
