The article examines the tax consequences of distributing liquidation assets among shareholders in Poland, emphasizing the ongoing debate between linguistic and purposive interpretations of tax law. Central to the discussion is Article 14a of the Corporate Income Tax Act, which outlines the tax implications of settling obligations through non-cash contributions. Prior to January 1, 2021, Polish administrative courts primarily held that the distribution of liquidation assets does not result in taxable income for the company, viewing it as an essential aspect of the liquidation process rather than a form of asset sale or exchange. The controversy stems from differing legal interpretations of what constitutes a taxable event in the context of liquidation. While some argue that distributions during liquidation fulfill a debt obligation to shareholders, others maintain that they simply represent the division of residual assets after creditor claims have been settled. This disagreement between judicial and fiscal perspectives has further complicated the application of tax law, particularly in regard to how liquidation is characterized and its effects on taxable income. The implications of these conflicting interpretations are significant for companies undergoing liquidation, as they can influence the overall tax liability and affect shareholders' expectations. As Poland's tax laws evolve, clarity on these matters will be crucial for businesses navigating the complexities of liquidation and tax compliance.