VAT deduction recall on vehicles threatens companies, jobs

Approximately 210,000 small and medium-sized domestic enterprises are threatened by bankruptcy and about 256,000 individuals could lose their jobs if the Finance Ministry continues to demand the return of a VAT deduction which the state offered between 1998 and 2000 on the purchase or lease of small delivery cars rebuilt from passenger cars. The issue stems from a Supreme Court ruling last November stating that a vehicle's official c ertification, and not its registration after reconstruction, is the only feature that plays a part in the vehicle's legal status. Following this ruling, tax offices in the country have begun to ask taxpayers for cor rections of their tax declarations and repayment of the VAT, together with interest. Marcin Kaszuba, the Finance Minister's press spokesman, said that the Ministry is looking into solutions to the problem. (Rzeczpospolita, p. B5) P.J.