Szeptel grapples with tax office demand of zł. 4.1 million

Publicly listed fixed line operator Szeptel has began legal proceedings against the Białystok tax office which is demanding the return of zł. 3.2 million of tax refunds, plus a fine of zł. 950,000. The case relates to last year's Szeptel's investments into a telecommunication network, and writing off the VAT from the liable tax. The fiscal office has questioned this write-off, as the investments were halted and did not bring any revenues. Therefore their value is equal to zero. The amount demanded is significant for Szeptel which recorded revenues of zł. 13.3 million during the first three quarters of the year, while its net loss reached zł. 7.4 million. The only issue which saved the company from bankruptcy was an agreement with creditors who were demanding zł. 50 million. "At the beginning of 2003, when Szeptel was facing bankruptcy, it had to suspend investments for a while. However, part of the investment has been completed, and is counted as fixed costs. It also brings in revenues. Another part of the project will also soon be finalized," said Szeptel's president Mariusz Pilewski. (Parkiet, p. 5) A.K.