Legal risk
The EU legal regulations which affect the paints and varnishes industry are constantly becoming more severe and complex.
In order to prevent this risk, the Group constantly monitors legal changes by:
- implementing an internal report on legal changes;
- related recommendations for actions to be taken.
There is also a risk related to differences in the interpretation of tax regulations. Despite observing by the Group both domestic and EU legal regulations in the field of accounting, tax information included in tax returns and declarations may be considered by the Polish tax authorities to be unlawful. If the tax authorities adopt a different tax interpretation than the one applied by the Group to calculate the tax liability, such a situation may have a significant impact on the Group’s financial results.