Month: March 2024

Changes in an ongoing investment and the challenges involved

Posted on by ts_admin

A maritime industry client faced a significant potential issue with regulatory authorities. The entrepreneur wanted to treat a change in the investment as a modification foreseen in the contract. At first glance, such an approach seemed feasible.

However, we decided to thoroughly analyze the matter and formed a working group composed of several lawyers and technical specialists. The task was extensive – not only did we need to prepare documents to gain a complete understanding of the situation, but we also had to gather detailed technical data to confirm whether the proposed solution was even viable.

Thanks to the efforts of our dedicated “task force” and the use of modern solutions, we identified errors in the client’s assumptions.

It turned out that if the entrepreneur had pursued the original solution, they would have been exposed to very high penalties. A particularly helpful tool was the timeline we prepared, which clearly explained the issues and highlighted discrepancies that the regulatory authority might focus on.

We recommended that the investment change be accounted for based on a different legal basis under the Public Procurement Law than initially planned.

As a result:

  • we mitigated the serious risk of penalties and disputes with regulatory authorities,
  • we achieved a constructive and safe solution that the client could utilize,
  • we reduced the client’s costs, time, and stress associated with the issue.

Such legal support, particularly thorough analysis and creative solutions is our specialty.

Unusual vessel and abolition relief

Posted on by ts_admin

A seafarer approached us, who works on a Standby Safety Vessel. This type of vessel can raise interpretative doubts with the tax office regarding its operation in international transport.

And in this case, that’s exactly what happened.

The client presented the issue to us rather late in the annual tax filing process – at the end of April 2024.

After a thorough and swift analysis of the documents, we concluded that an annual tax return must be filed. However, this would require an application of abolition relief for the year 2024.

Given that the type of vessel was a point of contention for the tax office, we informed the client that additional documents might be necessary for the application.

Thanks to detailed information from the client regarding his employment model, we identified an alternative basis for him to qualify for abolition relief. Supplementing the application with our arguments allowed for a favorable decision for the client, despite the interpretative discrepancies regarding the type of vessel on which he works.

Thanks to our quick response, the client:

  • successfully settled his tax obligations with the tax office,
  • received a positive decision from the tax office,
  • was able to take advantage of the abolition relief,
  • and, as a result, saved some money.

Resolving tax ambiguities for our clients – sailors – is our specialty.

 

Compiled by:

trainee advocate Michał Wieczorek

Yacht Registration under the Polish flag – what does it look like in practice?

Posted on by kancelaria

You are already the owner of a yacht, and you wonder how to save yourself unnecessary formalities and time not only at the stage of registering your yacht but also during further operation? Registering the yacht under the Polish flag can be really helpful with that.

Is it true that registering yachts in Poland is so advantageous?

Absolutely.

Registering recreational yachts up to 15 meters in Poland is a process that offers many benefits and conveniences for shipowners. Importantly, the owner does not have to be of Polish nationality, so foreigners often choose Polish flag for their yachts.

The biggest advantage of registering the yacht in Poland is its validity for a lifetime, which eliminates the need for periodic renewal. This is the biggest difference, compared to other flags.

In other countries, there are the obligations to renew registration, which is inconvenient but also leads to additional costs. Such a situation can often be a serious obstacle to the long-term operation of the yacht by the owner, who for example, in retirement fulfills his dream of traveling around the world.

This true global phenomenon is not only facilitating the shipowners’ lives, but it also spreads the red and white colors worldwide. It is now difficult to find a marina in the Mediterranean where a Polish flag would not be flying on at least one of the yachts.

The main advantages of registering yachts in Poland:

  • Valid for life: registration is valid for a lifetime, eliminating the need for annual renewal, providing stability and convenience for shipowners.
  • No periodic fees: it does not require annual renewal, eliminating the additional costs associated with it.
  • Fast registration process: the process is quick and efficient.
  • No restrictions for recreational yachts: Poland does not impose additional restrictions on yachts up to 15 meters in length, for example, by not requiring annual safety inspections and technical surveys.
  • Basic documentation: only basic documents are required, making the entire process more user-friendly and less complicated for shipowners.
  • No additional costs: and no chargeable obligations, which reduces the final operational costs of the yacht.

More about the process.

The process of registering yachts in Poland is relatively quick and efficient, allowing shipowners to quickly enjoy legal status of their boats. Restrictions regarding recreational yachts are also relatively small, making registration attractive to both amateurs and professionals.

Basic documentation is required for registration, which every new buyer will receive from the previous owner or from the shipyard. In case of older yachts, many data concerning the yacht can only be declared, and no document at all is required for this purpose. The minimum amount of required documents, and the possibility of replacing original documents with scans, makes the whole process more user-friendly and less complicated for shipowners compared to competitive flags. This also reduces unnecessary documentation, which is important especially for people planning to purchase a yacht abroad or people from outside Poland.

So, are there any obligations?

For yachts up to 15 meters in length, there are no additional restrictions other than obtaining a radio permit for a period of 10 years. Radio permission is a separate procedure that can be completed after obtaining the registration document.

Larger yachts must undergo safety inspection and technical inspection according to an established schedule. This is done in appropriate cycles, depending on the age of the yacht.

This is practically the only difficulty, and it applies only to those larger yachts and all commercial ones. For recreational yachts up to 15 m, the most popular ones, such an obligation is not foreseen.

Of course, the financial aspect is also important here, because inspections and surveys are usually costly. And it is in other countries that they are also mandatory for recreational yachts up to 15 m. Therefore, it is not worth complicating your life and choosing the best solution for yourself – which is Polish flag – seems to be very reasonable.

Who can help you with the process?

Foreign shipowners are obliged to provide an address in Poland for correspondence purposes. This often involves the need to engage a proxy not only to receive correspondence related to yacht registration but also for assistance in completing the registration application, contacting the registering authority, etc. Therefore, choosing the right person to help you with these actions is necessary.

It is worth having a professional proxy who guarantees to provide you with all necessary information and the completion of all required formalities. Very often, you can come across offers whose authors are guided by nothing but the desire to profit from the “performance” of the yacht registration service. It is recommended to avoid such offers and choose a reliable and trustworthy proxy.

Summary

Registering yachts in Poland becomes more popular and attractive every year, especially for those seeking stability, convenience, and safety in their sailing adventure. We encourage all to get to know all the possibilities of yacht registration in Poland and to join the wide community of sea travel enthusiasts under the Polish flag.

Legal advisory for debt collection from ST3 Offshore – successful recovery of 1.25 million PLN out of turn

Posted on by ts_admin

In 2017, we assisted a client in recovering a debt from the well-known factory ST3 Offshore sp. z. o.o., based in Szczecin. The initial debt amount owed by the factory to our client was 4.5 million PLN. The chances of recovering this amount were slim.

ST3 Offshore sp. z o.o. ceased paying its creditors. The factory’s management filed for bankruptcy, but soon withdrew the application. The reason was a decision by one of the shareholders (the state fund Mars TFI) to buy out the remaining shares and invest over 200 million PLN to repay part of the debt. Most creditors received up to half the value of their claims at the time.

However, a restructuring application was filled simultaneously.

For creditors and their effective recovery of the remaining debts, this was a rather risky move (restructuring suspends enforcement proceedings). Some creditors waited idly during this period, while others filed lawsuits hoping that the judgments would become final quickly, allowing them to immediately seize ST3 Offshore’s accounts.

We took a different approach. We knew it wouldn’t be possible to quickly conclude court proceedings with a final judgment. Therefore, we did not file lawsuits but instead submitted applications for security by registering mortgages on ST3 Offshore’s properties. The idea was that if the debt is secured by a mortgage, it can be pursued independently of the restructuring process.

The client was owed approximately 2.25 million PLN. We managed to secure an additional 1.25 million PLN with a mortgage. There wasn’t enough time for the last 1 million PLN (although this was beyond our control). We received the security on a Monday, but a few days later, it turned out that the court had announced the restructuring the before the weekend (on Friday, 2017).

As a result, our client was the only one among 400 to be able to recover an additional 1.25 million PLN during the ongoing restructuring. The remaining 1 million PLN was unfortunately included in the list of creditors. Due to the unsuccessful restructuring and bankruptcy of ST3 Offshore in 2020, we are still waiting to recover this amount.

Nevertheless, due to our bold approach, we successfully recovered 1.25 million PLN for the client in a hopeless situation. Other creditors were left empty-handed and are still waiting for the proceeds from the sale of ST3 Offshore to the Danish company VESTAS to be distributed.

Thank to our actions, the client:

  • recovered an additional 1.25 million PLN during the ongoing restructuring,
  • limited losses associated with the restructuring and bankruptcy proceedings,
  • could participate in the prolonged bankruptcy process with greater peace of mind.

Such legal support is our specialty, which we can successfully provide thanks to our extensive experience and unconventional solutions.