The Supreme Administrative Court (NSA) issued an important decision regarding the settlement of the costs of so-called bad debts. And this is not good news for taxpayers. The court ruled that if the debtor is insolvent, the same letter from the trustee confirming the minimal prospects for debt collection will not help in speedy settlement as a bad debt.
The case concerns a company that had problems with one of its contractors. In his request for interpretation, he explained that he had sold him ceramic services. However, the recipient did not pay the bill. Worse, in September 2019, the district court declared bankruptcy and appointed a trustee.