First instance, the administrative authority of the Ministry of Finance of the Slovak Republic appro
Last update: 12.07.2005 06:00
On the basis of the Board of Appeal proposal, the Deputy Prime Minister and Finance Minister of the Slovak Republic, Ivan Mikloš, by the decision from 19th May 2005, cancelled the decision of the Ministry of Finance of the Slovak Republic from 14th February 2005, by which a fine was imposed on the company Slovnaft, a. s., for infringement of the price discipline according to the Act on prices, to the amount of SKK 1,352,975,205.00 and returned the matter to the first instance administrative authority for a review hearing and decision.
The first instance administration authority (Department of the public internal financial control system of the Ministry of Finance of the Slovak Republic) issued a new decision in which it re-evaluated the above mentioned areas and decided on a repeated imposition of a fine to the amount of SKK 1,341,573,135.00, which is SKK 11,402,070.00 less than the original fine amount (SKK 1,352,975,205.00).
A reduction of the fine concerns research and development costs that were connected with the environment, marketing, and advertising. These costs, contrary to their previous decision, were acknowledged to be economically justified by the first instance administrative authority. Other items were considered, strengthened through reasoning as well as through evidence, and decided on their legitimacy and inclusion in the amount of the imposed fine.
The new decision had to be strengthened by supplementary questioning, so that the risk of failure was minimized in the event of legal proceedings. This implies that the Deputy Prime Minister and Finance Minister, through their recent decision to return the matter for hearing, under no circumstances agreed with the arguments put forward by Slovnaft.
First instance administrative authority verified and considered items as follows:
- Quantification and determination of profit adequacy in the year 2004 in the light of its development in previous periods
- Research and development costs
- Commissions for petrol filling station operators for the sale of fuel
- A fine for presenting false information
Slovnaft may lodge an appeal against this decision in accordance with the Act on administrative action to the Ministry of Finance of the
Mikuláš Gera
Public Relations Department Manager