TP SA will not pay tax on its cables

2007-04-19

TP SA will save over PLN 100m (€26.3m) in 2007 because of a reduction in property tax. The incumbent has, to date, been the only telecommunications company to comply with the Finance Ministry’s view that cable infrastructure is regarded as buildings and that tax should, therefore, be paid.
The operator estimates that approximately 30% of the PLN 400m (€105.3m) paid in tax on its buildings was accounted for by cable infrastructure. The incumbent is going to stop paying this tax as a result of actions taken by the cable TV operators, who opposed the Ministry’s interpretation and ordered a legal analyses of this issue. At the beginning of 2007, the Ministry issued a statement to the effect that cables are not buildings in certain situations.
TP SA has informed 140 municipalities that it is not going to pay the tax but insists that it will not apply for a refund of taxes paid.

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