Polish Ombudsman urges changes to tax regulations, arguing NGO board members are unfairly held fully liable for organizational tax debts with limited recourse.
NGO Board Member Tax Responsibility
Individuals serving on the boards of non-profit organizations (NGOs), such as foundations and associations, are fully liable for the organization’s tax obligations with their entire assets.
It is extremely difficult to escape this responsibility. The Ombudsman proposes changes to the regulations.
Limited Avenues for Relief
Generally, tax regulations provide only two ways to be released from liability: filing for bankruptcy within the proper timeframe or indicating assets (Art. 116 par. 1 pkt 1 and 2). These apply not only to companies but also to board members of organizations not conducting business activity (Art. 116a par. 1).
Bankruptcy Not an Option for NGOs
The problem is that an NGO board cannot file for bankruptcy for this purpose, as NGOs do not have the capacity for bankruptcy. The only remaining option is to indicate assets from which the tax authorities could collect the debt.
However, this can also be problematic, as foundations and associations usually do not have such assets.
Ombudsman’s Proposals
The Ombudsman has repeatedly pointed out this problem. In a recent letter to Finance Minister Andrzej Domański, he requested consideration of changes to the tax regulations.
He believes that, analogously to filing for bankruptcy, initiating supervisory actions under Art. 28, 29, and subsequent articles of the Law on Associations could be considered.
Initiating Corrective Action Creates Liability
The Ombudsman explained that today, a person initiating such corrective action also initiates proceedings that lead to their liability (and in many cases, serious financial difficulties), regardless of whether they are to blame for the circumstances or have taken any corrective action.
Link to Pending Tax Legislation
According to the Ombudsman, these principles could be changed during the ministry’s work on the draft amendments to the tax regulations (No. UC138), which aims to adjust the principles of liability of third parties for the tax arrears of a capital company.
Minister Domański was asked about potential changes and whether initiating supervisory actions by a board member of a foundation or association not conducting business activity should not be a prerequisite for exemption from liability for obligations to the tax authorities?
Reference Information
Letter from the Ombudsman of February 26, 2026, to Andrzej Domański, Minister of Finance and Economy, reference number VII.612.19.2025.CW/MC
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