On 16 June 2011 the Court of Justice of the European Union ('CJEU') issued a verdict stating that the reintroduction of Poland's tax on civil law transactions imposed on loans granted to companies by their shareholders for the years 2007 and 2008 was contrary to Community law.

In its verdict the CJEU ruled that Community law precludes a Member State from reintroducing a capital duty on certain activities if that Member State has previously waived the levying of that tax. Consequently, since Poland after its accession to the European Union abolished the tax on loans taken up by a capital company from its shareholder, reintroducing of such tax was contrary to Community law.

More information can be found in Tax & Legal Alert prepared by experts from PwC - download