Limitation of Tax Liability in Restructuring Proceedings
Limitation of Tax Liability in Restructuring Proceedings

Summary/Abstract: The aim of the article is to analyze the issue of limitation of tax liabilities in restructuring. The publication elaborates on the impact of the commencement of proceedings as well as the final approval of the arrangement and its possible amendment or repeal on the possibility of enforcing a tax liability, its chargeability, and limitation period. The following conclusions have been drawn from the analysis: 1) A tax claim that prescribed before the date of opening of the restructuring proceedings is expired so it is not covered by the arrangement; 2) In principle, the limitation period for tax claims does not start during the restructuring proceedings and if it already has, it is suspended; 3) The final approval of an arrangement leads to a change in the contractual relations binding the debtor (including tax relations); 4) If an arrangement is repealed, the limitation period commences when the decision becomes final.

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