Feel free to contact us:(+48) 22 113 14 51

Sanctions in the Fiscal Penal Code for a failure to prepare transfer pricing documentation in 2024

Along with the increase in the minimum wage in Poland, there have been changes in sanctions related to transfer pricing. These changes are significant, as from July 1, 2023, the wage increased threefold - from the initial level of PLN 3490 gross to PLN 4300 gross in July 2024.
Author:
Arsen Ohanyan
TP Assistant

With the increase in the minimum wage, the range of daily fine rates in the Fiscal Penal Code has also been increased. These fines can be imposed by the authorities in the event of failure to meet the documentation obligations related to transfer pricing.

Sanctions under the Fiscal Penal Code

Actions subject to sanctions under the FPC for failure to fulfill transfer pricing obligations include:

  • failure to prepare documentation;
  • failure to include grouped documentation;
  • preparation of transfer pricing documentation not in accordance with the facts;
  • failure to submit a TPR form to the relevant tax authority;
  • providing data in the TPR form that is inconsistent with the local transfer pricing documentation or the actual state of affairs;
  • failure to prepare the TPR form on time.

What is the amount of the fine under the Fiscal Penal Code?

Fines are imposed by applying a sanction in the amount of a multiple of daily rates. These are regulated by Article 23 § 3 of the Fiscal Penal Code, according to which the daily rate cannot be lower than 1/30 of the minimum wage, nor can it exceed 400 times this amount.

Important: From July 1, 2024, the gross minimum wage increased by 1.37% from PLN 4242 to PLN 4300. Consequently, as of early July 2024, the daily rate ranges between PLN 143.33 and PLN 57,332 (for comparison, in 2023, from January 1 to June 30, it ranged between PLN 141.40 and PLN 56,560), which means that the amount of the fine increased by 1.36%.

Fines for specific offenses and infractions related to transfer pricing documentation are primarily specified in Articles 56c and 80e of the Fiscal Penal Code. As of July 1, 2024, their amounts are as follows:

1. Article 56c of the Fiscal Penal Code:

  • Failure to prepare documentation, failure to include group documentation, or preparing transfer pricing documentation that does not reflect the actual state – the maximum fine is 720 daily rates, which is approximately PLN 41.28 million.
  • Failure to prepare transfer pricing documentation on time – the maximum fine is 240 daily rates, which is approximately PLN 13.76 million.

2. Article 80e of the Fiscal Penal Code:

  • Failure to submit the TPR form to the appropriate tax authority or providing data in the TPR form that does not match the local transfer pricing documentation or the actual state – the maximum fine is 720 daily rates, which is approximately PLN 41.28 million.
  • Failure to prepare the TPR form on time – the maximum fine is 240 daily rates, which is approximately PLN 13.76 million.

Important: According to Article 9 § 3 of the Fiscal Penal Code, criminal tax liability can be borne not only by members of the management body of an entity but also by individuals handling the economic matters (especially financial) of a natural/legal person or an organizational unit without legal personality.

Sanctions Resulting from the Tax Ordinance

Sanctions under the Fiscal Penal Code are not the only sanctions that a taxpayer faces for failing to fulfill documentation obligations. Liability under the Fiscal Penal Code does not exclude liability under other regulations, such as the Tax Ordinance.

Additional tax liabilities (for the company) are regulated in Articles 58b and 58c of the Tax Ordinance and have not changed in 2024. They can still have three different rates:

  • 10% - the minimum level of sanctions on the amount recognized by the Tax Office as improperly understated income or overstated loss (whereby it is also necessary to pay tax and due interest for late payment);
  • 20% - in the event of failure to submit transfer pricing documentation (or submission of incomplete documentation) or if the basis of the additional tax liability exceeds the amount of PLN 15 million - in respect of the excess over that amount;
  • 30 %- in the event of failure to submit transfer pricing documentation when, at the same time, the value of the basis for determining the additional tax liability exceeds PLN 15 million.

Important: According to Article 58c § 3 of the Tax Ordinance, if the taxpayer completes the incomplete tax documentation in full within the deadline indicated by the authority, not exceeding 14 days, the condition of lacking documentation is waived.

An additional tax liability cannot be imposed on an individual who, in this case, is liable for a tax offense or crime.

Skrócony formularz EN
Order online advice

Pursuant to the Personal Data Protection Act of 29 August 1997 (Journal of Laws Dz.U. 2016 item 922, as amended), I consent to receive commercial and marketing information from KR Group sp. z o.o. sp. k. with its registered office at ul. Skaryszewska 7, 03-802 Warsaw, and to introduction into the database and processing by KR Group sp. z o.o. sp. k. of my personal data provided in this form. I also acknowledge that my consent is voluntary and that I have the right to review, correct or remove my data.

usersearthmagnifiercrossmenuarrow-right