Poland’s Ministry of Finance unveils new tax legislation aimed at combating VAT fraud and improving tax authority efficiency.
Goals of the New Tax Bill Project
On Thursday, the government published draft amendments to the Tax Ordinance in its legislative agenda. The Ministry of Finance stated the project aims to improve relations between taxpayers and tax authorities while increasing the efficiency of tax administration.
The MF proposes replacing the non-statute-barred institution for tax obligations secured by mortgage or tax lien with an institution suspending the statute of limitations due to the establishment of a compulsory mortgage or tax lien of which the taxpayer has been notified.
Extension of Statute of Limitations and New Enforcement Mechanisms
“The increasing efficiency of tax authorities is particularly served by changing the method of calculating the statute of limitations for issuing a decision establishing a tax obligation for income not covered by disclosed sources or from undisclosed sources; introducing a new ground for suspending the statute of limitations for a tax obligation related to tax avoidance proceedings; and introducing the possibility of extending the statute of limitations for a tax obligation due to the correction of a declaration shortly before the expiration of the statute of limitations,” the MF reported.
Criminal Code Amendments
The project will also include changes to the Criminal Code aimed at decoupling the expiration of tax offense liability from the statute of limitations of the embezzled public-law claim. The MF also proposes adding a requirement to pay the monetary equivalent of the embezzled public-law claim as compensation for the financial damage to the State Treasury, even in cases where the tax obligation or other public-law claim has become statute-barred.
Special Provisions for VAT Fraud Cases
Furthermore, the proposed legislation will introduce the possibility for courts to rule on the monetary equivalent of the embezzled public-law claim under extraordinary aggravation of the penalty, despite the statute of limitations of the tax obligation (e.g., in cases of VAT fraud).
