Tax office says Centrozap owes zl. 21 mln for evading goods and services taxes

taxes The Tax Office in Katowice seized some of Centrozap's properties, as a result of auditing the company's tax statements from December 1994 and January-October 1995. According to the Tax Office Centrozap received undeserved tax rebates of zl. 21.01 million for reputedly over paid goods and services taxes. The Tax Office said the transactions for selling computer software which had been place at that time between Centrozap and Lithuanian company Abantas seem to be fictional. If true, such practice enabled Centrozap to obtain serious financial benefits by cheating the Treasury out of goods and services tax rebates. Centrozap's board of directors questioned the existence and amount of tax overdue. It appealed to the Tax Office to cancel its decision. Centrozap is a construction goods manufacturer. It is concentrating on creating its own capital group at the moment. However if the decision of the Tax Office remains, the financial liquidity of the company will be seriously threatened. After recording losses last year, Centrozap was expected to bring zl. 2.3 million profit this year. (Prawo i Gospodarka, page 12)