Financial instruments used to hedge core operations are not debt instruments so that the related costs are not subject to the limit,” held the Supreme Administrative Court in Warsaw on Friday. The court fully agreed with Sendero’s argument and ruled in favour of our client, a large WSE-listed energy company.

The client was represented by Grzegorz Młynarczyk, Sendero partner in charge of transfer pricing practice.

The dispute was about the limitation of borrowing costs (Article 15c of the CIT Act) in connection with use of hedging instruments.