The effects of a restructuring plan confirmed by the court shall continue even after its proper implementation; during their entire duration, a fine may not be imposed for an administrative offence committed before the commencement of the restructuring proceedings

On August 22, 2025, the Supreme Administrative Court of the Slovak Republic, by judgment case file no. 2Sfk/59/2023, changed the judgment of the Administrative Court in Banská Bystrica by annulling the defendant’s decision on the fine for incorrectly stated tax liability in the additional tax return and remanding the case for further proceedings. It stated that the plaintiff committed an administrative offense before the start of the restructuring proceedings, therefore, according to a later and more favorable legal regulation for the plaintiff, a fine cannot be imposed for such an offense if the effects of the restructuring plan confirmed by the court still persist.

According to the Cassation Court, the fulfillment of a court-confirmed restructuring plan does not cause the loss of its effects for the purposes of § 155(13)(c) of the Tax Code. A confirmed restructuring plan produces effects until the annulment of the decision confirming the plan, the determination of its ineffectiveness by the court, or the occurrence of ineffectiveness directly under the law. Such a situation did not occur in the claimant’s case.

The Cassation Court stated that the effects of a confirmed restructuring plan continue even after its proper fulfillment. Otherwise, it would mean that after fulfilling the restructuring plan, creditors would retain the right to claim their original receivables in full. This would not only directly contradict the law but also the very purpose of restructuring, which is to rehabilitate the debtor’s economic activity and simultaneously, at least partially, satisfy creditors’ claims to avoid the need for the debtor to enter liquidation bankruptcy.

According to the Cassation Court, the purpose of restructuring is to rehabilitate the debtor and finally settle its obligations, not to reopen its legal relationships after the plan has been fulfilled. Therefore, fulfilling the restructuring plan does not restore the possibility of imposing a sanction for a previous offense.

The judgment was adopted unanimously, and no appeal is admissible against it.

The decision was made by Panel No. 2 of the Supreme Administrative Court, composed of: President of the Panel JUDr. Elena Berthotyová, PhD. (judge rapporteur), and panel members JUDr. Marián Trenčan and Prof. JUDr. Juraj Vačok, PhD.