On 18th March 2025, the Supreme Administrative Court issued a landmark ruling in which it held that an employer can include amounts paid as compensation for a work-related accident as a tax deductible cost.
Significantly, the SAC ruled that this action is possible even if there were irregularities on the part of an employer that resulted in a work-related accident, if an injured party also contributed to an accident.
The basis for this position of the SAC is an employer’s strict liability. According to the court, this risk falls within the risk of conducting business, so the resulting expenses can be included in a tax deductible costs.
Should you have any questions, please contact Sebastian Kita (skita@cmwlegal.pl).