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Poland Supreme Administrative Court Holds Thin Capitalization Rules Apply for Former Shareholders

|Approved Changes|Poland
Poland

In a recently published decision, Poland's Supreme Administrative Court determined whether the country's thin capitalization rules apply on interest payments made to a former shareholder. The case involved a Polish company that had received a loan from its sole shareholder, which caused the company's debt-to-equity ratio to exceed 3:1 (the limit at the time of the loan - generally 1:1 as of 1 J…

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