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Swinoujscie LNG tax dispute settled

LNG Industry,

Following a four-year dispute with Poland’s Minister of Finance, the CMS Warsaw Tax team has succeeded in obtaining a positive court decision regarding the Swinoujscie LNG terminal.

Swinoujscie LNG project

The Warsaw Tax team has been advising the consortium of Saipem (ENI Group) and Techint since the start of the Swinoujscie LNG project in 2011. The team was involved in setting up the consortium, as well as in management and internal financial settlement matters. The project, consisting in the construction of an LNG terminal in Swinoujscie, on Poland’s Baltic coast, is valued at €692 million.

The case concerned the interpretation of VAT payment obligations by the Minister of Finance, with a disputed amount of more than €240 million. Although three administrative courts had judged in our client's favour, securing this strategic investment structured by the CMS Poland Tax team, the Minister of Finance challenged these decisions.

However, the Supreme Administrative Court rejected the cassation appeal of the Minister of Finance, confirming the consortium’s approach as consistent with the law.

Adapted from press release by Katie Woodward

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