According to the judgment of the Voivodship Administrative Court in Rzeszów of 2.2.2017, passed in the case with the Ref. No. I SA/Rz 1016/16, the notion “a taxpayer cannot determine” applies also to such actual situations in which, for reasons not attributable to the taxpayer, irrespective of him, in particular in the situation of force majeure, it is impossible to determine the cost of producing a fixed asset in accordance to the standard contained in art. 22g sec.

The above judgment was issued in the light of the following factual circumstances. The taxpayer, claimant, erected a commercial building in order to develop its business.  The main expenditure for its erection was incurred in the years 2007–2010. In June 2009, and subsequently in May 2010, the city, where the claimant conducted his activity, suffered from a massive flood that destroyed all of the claimant’s books and records. This fact was reported to the Internal Revenue Office.

Then, the taxpayer asked whether in connection with the aforementioned event he could make depreciation write-offs for the building.

The taxpayer argued that the determination of the value of the building as a result of the loss of books and records is possible through the appointment of an expert, who would determine the market value of the property. In his view, on the basis of such prepared evaluation, he will be entitled to enter a fixed asset to the records, amortize it and declare it in the costs of the conducted activity. The claimant referred to art. 22 g sec. 9 of the Personal Income Tax Act, which allows the possibility of determining the value of a fixed asset – in exceptional situations – according to an expert’s evaluation taking into account market prices.

The case eventually appeared before the Voivodship Administrative Court in Rzeszów, which indicated that in the judgment of the court the use of the formulation “a taxpayer cannot determine” includes also the situation of occurrence of force majeure – he cannot determine the costs of producing a fixed asset according to the general principles expressed in art. 22g sec. 4 of the Tax Act.