Poland’s Supreme Administrative Court questions constitutionality of tax exemption rules when donee makes payment from donor’s funds.
Constitutional Question on Tax Exemptions
The Supreme Administrative Court has raised a question regarding the constitutionality of tax exemption rules under Article 4a, paragraph 1, point 2 of the Inheritance and Gift Tax Act.
The court is examining whether tax authorities can justifiably block taxpayers from utilizing this exemption when a gift payment is made from the donor’s funds but executed by the donee.
Case Raises Doubts About Legal Compliance
While hearing a taxpayer’s case, the cassation court has expressed doubts about whether the current tax provision aligns with the Polish Constitution.
The question, though worded differently, essentially asks whether the existing tax law violates constitutional principles in this specific scenario.
Simplifying Gift Transactions
Financial experts note that the most straightforward method for gifts is to directly transfer money to the recipient’s bank account.
