27.3 Contingent receivables
In the previous reporting period, the Group recognised a contingent receivable for a potential refund of the excise tax overpayment of PLN 120 million. The Group awaited the Supreme Administrative Court’s decision on what excise duty rate should be applied to settle the excise duty relief for the redemption of origin energy rights arising from renewable energy sources before 1 January 2019.
In the opinion of the PGE Capital Group, the rate in force at the time of the sales of electricity generated from renewable energy sources to the end user, i.e. PLN 20/, should be applied to settle the said relief. This position was sustained by the judgement of the Provincial Administrative Court in Rzeszów of 8 October 2019.
On 20 November 2019, the tax authority filed a cassation appeal against the above-mentioned judgement of the Provincial Administrative Court.
On 22 November 2023, the Supreme Administrative Court issued a ruling unfavourable to the Company. The ruling of the Supreme Administrative Court is final and not subject to appeal.
As at 31 December 2023, the Group does not recognise a contingent receivable. However, further analysis of the possibility of recovering the overpaid tax is ongoing.