Obligation to maintain an inspection logbook
The inspection logbook, as defined in Article 57 of the Entrepreneurs' Law, contains detailed information regarding all inspections carried out in the company.
The purpose of maintaining an inspection logbook is to ensure that the entrepreneur holds comprehensive documentation of all inspections conducted. This document provides information to authorities about the subject matter, scope, and results of past inspections. It enables an authority to waive conducting a new inspection if one has already been carried out by another authority or to adjust the scope of its inspection according to current needs.
Due to the statute of limitations for tax obligations, the inspection logbook must also be retained for 5 years after the business is closed.
What should the inspection logbook include?
In accordance with the Entrepreneurs' Law, the entrepreneur’s inspection logbook must include entries covering the following:
- Identification of the inspecting authority;
- Identification of the inspection authorization;
- Subject matter and scope of the conducted inspection;
- Dates on which the inspection was initiated and concluded.
However, it is not prohibited to extend the above list with elements not expressly provided for in the law. The entrepreneur may add other notations to the logbook at their discretion. The information recorded in the inspection logbook should be supported by documents retained by the entrepreneur.
Form of maintaining the inspection logbook
The entrepreneur is obligated to maintain the inspection logbook in either paper or electronic form. In the case of a paper version, entries are made by the inspector; for the electronic version, entries are made by the entrepreneur.
When an inspection is initiated, the entrepreneur is required to promptly present the document to the inspector. For electronic logbooks, the entrepreneur must allow the inspecting authority to review its contents or provide printouts from the IT system in which the inspection logbook is maintained.
Consequences of failing to maintain an inspection logbook
Failure to maintain an inspection logbook, under the Fiscal Penal Code, may result in a fine of up to 720 daily rates. Given the above, it is advisable to take advantage of the services offered by KR Group specialists, who can assist in preparing and making entries in the entrepreneurs’ inspection logbooks.
Beyond the stick – the carrot: the right to limit inspections
Maintaining an inspection logbook is not only a legal obligation subject to penalties but also an opportunity to benefit from privileges provided under the Entrepreneurs' Law. One such privilege is the limitation of the total duration of inspections conducted by authorities in a calendar year, as set forth in Article 55 of the same law. According to this provision, the total duration of all inspections may not exceed:
- 12 business days for micro-entrepreneurs,
- 18 business days for small entrepreneurs,
- 24 business days for medium entrepreneurs,
- 48 business days for large entrepreneurs.
The inspection logbook plays a crucial role in this regard – it serves as primary evidence for the entrepreneur to demonstrate that this limit has been exceeded.
It is important to note, however, that the inspection time limits do not apply to certain inspections conducted by the National Revenue Administration. Therefore, entrepreneurs cannot expect the annual time limit protection to apply to all tax inspections, although in many cases the provisions of the Entrepreneurs' Law may still apply partially – especially when inspections do not uncover significant irregularities.
Łukasz Kempa, Head of Tax Advisory, Tax Advisor
Proper maintenance of the inspection logbook thus not only helps organize documentation but also becomes a tool for protecting the entrepreneur’s interests. In practice, it can serve as a "carrot" balancing the "stick" of potential penalties – provided the entrepreneur knows how to make use of it.
