In the proposed amendments to the IRS, the legislator intends to address the limitation of criminality and tax offences.
The bill amending the Act – the tax penalty code includes, among others, a modification Article 44 Tax Penal Code. According to section 1 This provision shall be criminal. fiscal criminal offence ceases if, since the time of his or her committing, he or she has:
(a) 5 years when an act constitutes fiscal criminal offence subject to fines, restrictions or imprisonment not exceeding 3 years,
(b) 10 years when an act constitutes fiscal criminal offence sentenced to imprisonment in excess of 3 years.
Project provides for deletion Article 44(2) the tax penalty code, which according to the assumptions, will avoid a situation where criminality fiscal criminal offence the reduction/exposure to the reduction of public liabilities shall be subject to a limitation after the expiry of the 5 years
These records are understandable and not the planned modification. Doubts may awaken section 2 the same recipe. In the current version of the Tax Penal Code, it reads as follows:
„Criminality fiscal criminal offence where the amount of public debt is reduced or exposed to a reduction in the amount of public debt, it shall also cease when that amount has expired.’
That's the one. section 2 is problematic because according to Article 70(1) Tax Ordinance the tax liability expires 5 years from the end of the calendar year in which the tax payment deadline expired.
Since the end of the year in which the deadline for payment of claims has expired, the limitation period for the criminality of tax offences is also valid. In view of the above, the limitation period for certain tax offences at risk of punishment above 3 years of imprisonment 5 years instead of 10.
The justification for the project shows that this situation may have a negative impact on the protection of the financial interests of the State Treasury.
Therefore, the proposal provides for deletion Article 44(2) the tax penalty code, which according to the assumptions, will avoid a situation where criminality fiscal criminal offence the reduction/exposure to the reduction of public liabilities shall be subject to a limitation after the expiry of the 5 years.
Due to deletion section 2 changes will also be made Article 44(3-5) the tax penalty code because they all appeal to it, however Under section 5 will change yet one A thing.
Currently, if proceedings have been initiated against the perpetrator during the limitation period, the criminality of the offender fiscal criminal offence specified Under section 1 point 1 stops with an interval 5 years, a fiscal criminal offence specified Under section 1 point 2 - with expiry 10 years after the end of this period.
The project envisages aligning both of the above periods with 10 years.
Michał Zdanowski
Tax consultant At Russell Bedford Poland
Graduate of the Faculty of Law and Administration at the University of Warsaw, Graduate of the Postgraduate Tax and Tax Law Studies at the University of Warsaw. During his studies he gained experience in law and tax law firms. Since September 2011 is associated with the law firm Russell Bedford Poland. Specialises in documenting transactions between related parties.