Definition of a ‘structure’ declared unconstitutional

17 July 2023 | Knowledge, News

On 4 July, the Constitutional Tribunal (CT) issued a landmark judgment (ref. SK 14/21) declaring the definition of a ‘structure’ in the Local Taxes and Levies Act unconstitutional.

The CT also stated that the current definition of a ‘structure’ in Article 1a(1) (2) of the Act will not be invalidated until 18 months after the judgment. Will this ruling have a significant impact on corporate finance? Let’s find out.

How the new definition will affect tax regulations

It is expected that the new definition of a ‘structure’ will lead to changes not only in the Local Taxes Act but also in the Income Taxes Acts. The most profound reform could also introduce solutions based on ad valorem property tax (Polish: “podatek katastralny”).

However, the question will inevitably arise as to whether it is worthwhile taking action with respect to both pending and closed proceedings under Article 1a(1) (2) of the Act.

This is because unconstitutionality is a ground for reopening proceedings that have been closed by a final decision. Therefore, in January 2025, when the CT ruling comes into force, taxable persons will be able to file for reopening such proceedings if the lawmakers do not amend the provision in question.

When it comes to pending proceedings, taxable persons should rely on the published ruling. If the CT declares a legal provision unconstitutional, this should be taken into account in the course of ongoing proceedings.


We need to wait and see the reasons for the judgment, which may provide guidance to the lawmakers in redefining the term ‘structure’, making it easier to draft possible amendments to the Act.

Our tax team can help your business prepare quickly and confidently for the property tax changes, and find the best solution for your case, whether pending or closed.

Any questions? Contact us

Wojciech Śliż

Jan Janukowicz

Source: Rzeczpospolita


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