Shareholders of a municipal limited liability company are liable for social security contributions arrears under tax code provisions.
Poland (PL)
Legislator summary
AI generatedThe Supreme Court dismissed the municipality's cassation appeal, upholding the lower court's decision that it must pay social security contribution arrears. The municipality argued that the 1980 Tax Obligations Act no longer applied after the 1998 Social Security Act took effect, and that Article 49 of the Municipal Self-Government Act exempted it from debts of other municipal legal entities. The court rejected these claims, ruling that the tax code provisions regarding third-party liability for pre-1998 debts remained in force and that the municipality's status as a sole shareholder created a legal basis for liability. Consequently, the court held that the municipality is responsible for the debts proportional to its share in the company's profits.
Legislator headnote
AI generatedArt. 332, 343 § 2 pkt 1 Ordynacji podatkowej; Art. 49 ust. 1 ustawy o samorządzie gminnym: Shareholders of a limited liability company remain liable for social security contribution arrears arising before the new tax code's entry into force, and the municipal self-government act does not exempt a municipality from such liability when it is a shareholder.