Interpretation of premise of having firm and regular source of income in the proceedings for recognition as a Polish citizen
On 19 October 2017 the Voivodeship Administrative Court in Warsaw issued a judgment (case no. IV SA/Wa 1306/17) in which it adopted interpretation of firm and regular source of income favourable for foreigners applying for recognition as a Polish citizens. Due to the judgement and SDZLEGAL SCHINDHELM’s efforts Client from April 2018 benefits from final and binding decision recognizing him as a Polish citizen.
The Voivodeship Administrative Court in Warsaw agreed with SDZLEGAL SCHINDHELM’s view that the condition of firm and regular source of income which shall be met by foreigners applying for recognition as a Polish citizens was misjudged both by the first instance authority – the voivode, and appellate authority – the Ministry of Interior and Administration. These authorities rejected Client’s application for recognition as a Polish citizen claiming that the loss from the conducted business presented in the annual tax return indicates that the source of income is neither firm, nor regular. They did not accept Client’s and SDZLEGAL SCHINDHELM’s arguments that the loss results solely from amortisation write-offs to real properties which do not influence the actual revenue, because they are tax deductible expenses, not expenditures, and that the source of income is simply the business conducted.
The Voivodeship Administrative Court in Warsaw acknowledged that the administrative authorities misunderstood the notion of “source of income” identifying it as notion equal to “income”. The court pointed out that the condition of firm and regular income is met when given source of income brings permanent monthly cash inflow. It is pointless to examine how cash generated in such way is used and what is the financial result presented in the tax return.
The case was led by Kinga Słomka – Legal advisor at SDZLEGAL SCHINDHELM.