Poland’s government has approved major changes to tax regulations, modifying statute of limitations rules and reporting requirements.
Tax Penalties After Statute of Expiration – What Does the Amendment Change?
The most significant change involves repealing Article 44, paragraph 2 of the Penal Tax Code. Currently, this provision states that if a tax liability has expired, the taxpayer cannot be penalized for a tax offense involving the reduction or endangerment of public law claims. The planned repeal of this provision means that even if the tax authority cannot collect the tax, a regular court can still penalize the taxpayer for a tax offense.
Moreover, the equivalent of the expired tax can be collected from the offender if required by the Penal Tax Code (proposed Article 15, paragraph 1a of the Penal Tax Code).
Expiration of Tax Liabilities – New Rules
Instead, the controversial Article 70, paragraph 6, point 1 of the Tax Ordinance will be repealed. This provision causes the statute of limitation period for tax liabilities to be suspended when a criminal-tax proceeding is initiated. The tax authority has often been accused of instrumentally using this right and initiating proceedings just before the statute of limitation expires to give itself more time to collect the tax.
National Tax Schemes MDR – End of Reporting Obligation?
The amendment approved today also provides for the elimination of the obligation to report national tax schemes (mandatory disclosure ruling – MDR). However, reporting cross-border MDR to the Head of the National Tax Administration will still be required, as mandated by EU Directive 2018/822 (DAC6 Directive).
Other provisions of the Tax Ordinance regarding MDR will be standardized and adapted to the aforementioned directive, and the quantity and frequency of submitted forms will be limited, assures the Ministry of Finance in its communication.
Tax Deregulation – Simplifications and Changes for Businesses and Citizens
The amendment project also provides for a catalog of other simplifying changes. It includes, among other things, eliminating the requirement to submit an application for confirmation of overpayment when it results from a corrected declaration.
The amount of tax that a third party can pay on behalf of a taxpayer will increase from 1,000 zł to 5,000 zł. The regulations will also include a basis for tax forgiveness before its payment deadline.
Municipal tax authorities will be able to issue a decision determining liability in property tax, agricultural tax, and forest tax for individuals “based on data known to the tax authority by virtue of office without prior service of a decision to initiate proceedings.” This change is intended to speed up the issuance of decisions and reduce costs for local governments.
