Landmark Ruling On Board Members' Liability For Tax Debts

On 22 April 2025, an important judgement of the Court of Justice of the European Union (CJEU) dated 27 February 2025 was published in case C-277/24 (Adjak), marking a significant shift in the approach to board members' liability for a company's tax debts. The preliminary ruling was requested by the Provincial Administrative Court in Wrocław and concerned the compatibility of Polish regulations with EU law.

Violation of EU Standards

The CJEU ruled that Polish provisions, which automatically assign liability for a company's tax debts to its board members, violate the rights of the defence guaranteed by the EU.

Specifically, the court criticised:

• denying board members access to relevant case files;