Supreme Court allows tax assessment based on profit shifting to entities enjoying special tax relief within a business connection.

The Supreme Court of Poland allowed the extraordinary revision of a lower court decision regarding corporate income tax for the year 1993. The tax authority determined that the taxpayer shifted profits to related entities enjoying special tax relief, violating the principle of fair taxation. The court ruled that the lower court incorrectly merged two distinct factual scenarios under Article 11 of the Income Tax Act, thereby permitting the tax assessment based on the profit-shifting mechanism.