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25 June 2014

Another judgment from the Supreme Administrative Court regarding the establishment of corporate income tax due from Netia for the year 2003 (46/2014)

The management of Netia SA (the “Company”) announces that on June 24, 2014 in the matter of settling the amount of Netia's CIT liability for 2003, the Supreme Administrative court (the “NSA”) issued a new decision. The Company had appealed to the NSA to modify the 10 October 2013 decision of the Voivodship Administrative Court in Warsaw (the “WSA”) that cancelled a 2009 decision of the Director of the Tax Chamber setting Netia's CIT liability for 2003 at PLN 34.2 million, plus interest, as, in the Company's opinion, the WSA's written justification did not fully reflect all the arguments previously brought before the NSA by the Company at the earlier, successful NSA hearing that took place on 25 June 2013. Yesterday’s NSA decision rejected the arguments presented by Netia and, as a result, the WSA's decision of 10 October 2013 becomes binding. Accordingly, the second instance decision of the Director of the Tax Chamber has been removed from legal circulation while the original first instance decision is now once again in force before the Director of the Tax Chamber and once again awaits its review while taking into account the subsequent binding decisions and the justifications of the WSA and the NSA. 

The Company will continue to take all possible measures to secure a positive outcome of the dispute with the tax authorities and is now waiting for a written statement of the reasons for the judgment from the NSA. The disputed tax liabilities set by the Tax Chamber's 2009 decision at PLN 34.2 million, plus interest, were paid in full by the Company in 2010.

Legal basis: Article 56 Section 1 Item 1) of the Act of 29 July 2005 on Public Offering, the Conditions Governing the Introduction of Financial Instruments to Organised Trading, and Public Companies (Journal of Laws of 2005, No. 184, Item 1539).