Board Krakchemia S.A. with its registered office in Kraków (the "Company") informs that on September 26, 2018 it received the report from the audit of the Company's books of account for the period from March to December 2013 as part of the audit of the reliability of the tax bases declared and the correctness of calculation and payment of tax from goods and services for individual settlement periods from March 2013 to December 2014 kept by the Head of the Małopolska Customs and Tax Office in Kraków. The minutes show that during the control proceedings, accounting books and records of purchases and sales conducted for the purposes of value added tax for the months from March 2013 to December 2013 were considered unreliable. The content of the protocol does not specify the potential amount of tax arrears. The report lists the purchase invoices of the Company, from which the input tax amounted to approx. PLN 19,768,000. PLN, as well as sales invoices of the Company with a net value of 15 892 thousand. EURO (covered by the 0% VAT rate in connection with the intra-Community supply of goods) and sales invoices of the Company, for which the amount of due tax paid by the Company to the office amounts to approx. PLN 2,481 thousand. PLN. The invoices listed in the report include transactions related to the trade in plastic granules with seven contractors of the Company. According to the findings of the protocol, economic transactions documented with invoices and transport documents issued by individual trading participants did not lead to the actual achievement of the economic objective, which is the ratio of the functioning of individual trading participants. The basis for questioning the books is related to the unreliability of contractors. The report is a document that does not settle and does not terminate the proceeding, which is still pending and both the body conducting the proceedings and the Company actively participate in it, still collecting evidence. The report does not specify the tax arrears on the Company's side. In the Company's opinion, questioning the reliability of tax records is not only premature, but also completely unjustified. In particular, the Company had and used procedures to verify counterparties in practice, which in its opinion excludes the possibility of attributing to the Company the lack of due diligence in conducting the transaction. Therefore, the Company intends to submit within the statutory deadline14 days of reservation to the protocol and take necessary legal action to demonstrate the lack of grounds for accepting findings unfavorable to the Company, in particular to submit evidence requests. The company publishes the information, because the report is one of the important stages of the audit proceedings, the final result of which may be significant for the values reflected in the Company's accounting books.
Legal basis: art. 17 MAR - confidential information.
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