KGHM takes a bruising in court over tax deductible business costs

The court ruled that business trips to Africa and Cuba cannot be accounted as legitimate costs connected with raising future revenues. "None of the trips resulted in the signing of a contract, therefore it is obvious that they were not costs which would bring additional revenues," declared Judge Ryszard Pęk. Back in 1999, KGHM also paid zł.14 million as part payment of school fees for the children of the company's employees. The tax office recognized that as social aid which also is not tax deductible. The only issue in court which the company won was that of counting the costs of hiring security guards for members of KGHM top management as legitimate costs. (Puls Biznesu, p. 7) A.K.