Taxpayers are still not clear on the scope of classification of tax schemes, even though the regulations on Mandatory Disclosure Rules (MDR) have been in force since January 2019. The high fines for noncompliance with reporting requirements and uncertainty of interpretation significantly raise the fiscal, operational and business risks.
Reporting relevant transactions to the Polish tax authorities on behalf of the client (under a power of attorney)
So far the Director of National Revenue Information has refused to issue individual interpretations on MDR, which has exacerbated taxpayers’ problems classifying their activity for MDR purposes. However, in the judgment of 28 January 2021 (case no. I FSK 1703/20), the Supreme Administrative Court held that tax schemes may be the subject of tax interpretations. Thus hopefully the unfavourable practice of the authority will change in this respect.
According to the tax clarifications, claiming tax relief or exemptions does not constitute a tax scheme if the main purpose was not to obtain a tax advantage.
Yes, if the value of the dividend exceeds PLN 25 million.
Yes, if a person is hired on the basis of self-employment despite the lack of independence and economic risk, while remaining fully subordinated to a single entity.
In the opinion of the tax authorities, such a change can qualify as a tax scheme. However, there are arguments that such a change in form is not a tax scheme.
The Tax Ordinance provides for sanctions for failure to comply with the MDR regulations. Fines for such infractions as failure to introduce procedures for combating non-reporting of tax schemes by obligated entities can run as high as PLN 10 million.
The Fiscal Penal Code also provides for sanctions. There is a fine (up to PLN 21.6 million) for failure to report a tax scheme, late reporting, or other behaviour covered by Art. 80f of the Fiscal Penal Code. There is also a fine for using an invalid tax scheme number (up to PLN 7.2 million).