Expropriations – Euro 2012 speculative law
The law firm represents landowners who were expropriated for the expansion of Grunwaldzka Street as part of the Euro 2012 venture.
As negotiations with the investor failed, proceedings to determine compensation are pending before the governor. The current dispute centers around estimates prepared to determine compensation, the results of which do not lead to full compensation for the damage caused to clients.
A separate issue is the question of value-added tax (VAT) in a situation where the expropriated entity is an active VAT taxpayer within the meaning of the article 15 VATU.
In such a situation, the transfer of property ownership as a result of the issuance of a localization decision is treated as a supply of goods, and the amount of compensation determined by the governor is treated as a gross amount on which the expropriated VAT taxpayer must pay tax. In this situation, it is necessary to issue a decision setting compensation in such an amount that includes VAT.