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WIN THE CASE IN THE COURT OF ARBITRATION FOR SPORT

Date: 24.04.2014

We are pleased to announce that the Office has won for its Client a important litigation in the Court of Arbitration for Sport in Lausanne (CAS). The decision in case no CAS 2013/O/3166 was issued April 23, 2014 year.


A STUDENT SPORTS CLUBS IN POLAND

Date: 04.04.2014

The basis for the creation of a student sports club indicates Act of 25 June 2010 (Journal of Laws of 2010 No. 127, item. 857, as amended). Law sets out the principle that sports activities are carried out in sport clubs (Article 3) and indicates Student Sports Club as a special kind of sports club (Article 4 paragraph 1).

Student sports club was specified the Law of the sport due to the specific subject of activity, as well as other means of registration, and separate records referred to in Decree minister responsible for physical culture.

Another piece of legislation that regulates the functioning of student sports clubs, is the Act of 7 April 1989 - Law on Associations (Journal of Laws of 2001 No. 79, item. 855, as amended), with the exception of the provisions concerning the registration.

Student sports club subject to a entry in the register maintained by the Starosta competent for the office of the club. Entry in the register shall be made on the basis of the application. Entry and refusal of entry in the records by way of a decision. The application shall be accompanied by a statute of student sports club, a list of founders, containing their names, dates and places of birth, residence and signatures and information about the business address of the sports club.

With the entry in the records, Student Sports Club acquires legal personality.

Members of the student sports club may be particularly pupils, parents and teachers.


VAT EXEMPTION FOR SERVICES CLOSELY LINKED TO SPORT OR PHYSICAL EDUCATION IN POLISH LAW

Date: 31.03.2014

Pursuant to art. 43 paragraph 1 item 32 of the Law on VAT tax on goods and services are exempt services closely linked to sport or physical education provided by sports clubs, sports associations and trade associations and other legal persons whose statutory purpose is to promote the development and dissemination of sport.

In addition, an exemption is provided that the services are necessary for the organizing and practicing sport or physical education and participation in it, providing these services are not inclined to make a profit and the services are rendered to persons taking part in sport or physical education.

For the benefit of the exemption, the subject must provide services closely linked to sport or physical education, and these services must be necessary for the organization and organizing sports or physical education and participation in it. For example, a company which is a sports club whose aim is to promote physical culture among children, activities focused on the development and promotion of the sport, providing services to organize sports activities for children, and these activities are not for profit - meet the above criteria and can benefit from the exemption.

Polish legislature, however, cut off from exemption following services closely linked to sport: related to the business of marketing and advertising and promotion, admission to sporting events, consideration conducting vessels for sport and recreation, paid accommodation linked to sport or physical education, the rental of sports equipment and sports facilities for a fee.

In addition, pursuant to art. 43 paragraph 17 of the VAT Act, the exemption of services closely linked to sport or physical education does not apply to the provision of services if they are not necessary to perform the basic service is exempt from tax or their main purpose is to obtain additional income by the taxpayer, the competitive performance of these activities in relation to the taxpayers do not benefit from such exemption.

In turn art. 43 paragraph 18 of the VAT Act provides that the exemption referred to in art. 43 paragraph 1 item 32, shall apply provided that the subjects carrying out activities referred to in that provision does not reach in a systematic way profit from this activity, and if their achievements are allocated entirely to the continuance or improvement of the services.