Entrepreneurs affected by floods do not pay compensation tax and will reimburse the losses as expenses

Opinions for “Rzeczpospolita”
Arkadiusz Łagowski, tax advisor, partner at law firm Chojnacka & Łagowski

Companies affected by the September floods can settle cost losses based on general principles. They may also gain additional benefits from the removal of the compensation tax levy. This is a special relief that cannot be granted, for example, to entrepreneurs affected by the 2010 floods or companies whose shops on Marywilska Street burned down. So maybe – to make the future fairer – the Ministry of Finance should prepare an amendment that excludes all compensation for damage resulting from force majeure from taxation? This concept is known in Polish law, although there is no legal definition, it is present in doctrine and case law. They assume that the manifestation of force majeure, in particular, is a catastrophic phenomenon caused by acts of nature, for example, floods, hurricanes, fires.



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