Entities obliged to report on tax schemes have until the end of February of this year. Since this obligation is the new Ministry issued tax explanations dated 31 January 2019, in which it explains the most important issues in this matter.
We already know that the tax report is subject to the definition of a tax scheme. What further steps should be taken to comply with the obligation to provide MDR, that is to say, the Mandatory Disclosure Rules.
The obligation to submit MDR shall apply, in principle, to tax schemes for which one the events resulting in the obligation to provide information occurred on the date of entry of the Act (i.e. 1 January 2019) or later
Obligation to submit MDR
Information on tax schemes shall be provided by: promoter, beneficiary or ancillary, i.e., tax adviser, lawyer, legal adviser, employee of a bank or other financial institution advising clients, statutory auditor, notary, person providing accounting, accounting officer or financial director, bank or other financial institution.
The promoter shall provide the Head of the KAS with information on the tax scheme within the time limit.
30 the days, and if it has not been waived by the beneficiary from the obligation to maintain a legally protected professional secrecy, inform the beneficiary and other entities of the need to provide information on the scheme and subsequently within the time limit 30 the days from the date on which it informed the beneficiary or other entities of the obligation to provide information on the tax scheme, it shall inform the Head of the KAS of the notification to the beneficiary and to other entities of the obligation to provide the tax scheme, indicating the date of availability of the scheme and the number of entities it informed.
The information provided to the user should contain data on the tax scheme in question under Article 86f Tax Ordinance and information on the obligation of the beneficiary to provide information on the tax scheme to the Head of KAS.
For the proper fulfilment of information obligations, the four MDR information types:
- • MDR–1 tax scheme information to be provided on the basis of Article 86b(1), Article 86c(1)(2), Article 86d(4) Tax Ordinance;
- • MDR–2 notification of the tax scheme on the basis of Article 86b(6), Article 86d(3)(5) Tax Ordinance,
- • MDR–3 information on the tax scheme to be provided on the basis of Article 86j(1) Tax Ordinance,
- • MDR–4 quarterly information on the standardised tax scheme, transmitted on the basis of Article 86f(4) Tax Ordinance.
Information MDR-1 and MDR-2
The procedure for the promoter to submit information on the tax scheme depends on whether the tax scheme is standardised. If so, then within the time limit 30 days from the day following the availability of the tax scheme, from the day following the preparation for the implementation of the tax scheme or from the date of implementation first activities related to the implementation of the tax scheme – whichever is the earlier – the promoter shall provide the Head of the National Tax Administration with information on the tax scheme, using the form MDR-2.
If we are dealing with a scheme other than a standardised scheme, then if the promoter is not subject to the obligation to maintain a legally protected professional secrecy or if, for a given tax scheme, it is subject to the obligation to maintain a legally protected professional secrecy but has been exempted from the obligation to maintain it, he shall submit information on the tax scheme on the MDR form within the time limit of submission of the tax scheme – 1.
The promoter shall inform the recipient in writing of the NSP's tax scheme, including confirmation of the NSP's broadcast, as soon as it is received.
Compliance with the obligation to report information to the Head of the KAS by the promoter and to inform the beneficiary accordingly, the beneficiary of the need to submit separate information on the tax scheme.
Information MDR-3
If the beneficiary has carried out any activity during a given settlement period which is part of a tax scheme or has obtained a tax advantage resulting from such a tax scheme, its second It will be mandatory to provide information to the Head of the KAS that he has applied the tax scheme during the settlement period. Such information shall include:
- • NSP tax scheme – and where the tax scheme does not have an NSP, the information submitted to the Head of KAS should contain data on the tax scheme submitted on the form MDR-1 (Article 86f Tax Ordinance);
- • the amount of the tax advantage resulting from the tax scheme, if the recipient has received such an advantage during the accounting period.
Such information shall be provided on the form MDR-3 on the date of submission of the tax return for that accounting period (Article 86j Tax Ordinance). In the case of a beneficiary which is part of a tax group within the meaning of the CIT Act, the beneficiary shall submit a form MDR-3 at the date of submission of the tax return for the tax settlement period of the group.
Information MDR-4
Quarterly information on the provision of a standardised tax scheme MDR-4
Within time 30 the days after the end of the quarter, the promoter or ancillary shall provide the Head of the KAS with information containing the identity of the beneficiary to whom he has made the tax scheme standardised during that quarter, indicating the NSP.
Where the transfer of the beneficiary data would violate the obligation to maintain a legally protected professional secrecy, the obligation to transfer it shall not include the beneficiary data and the data identifying the participant in the scheme which has not released the promoter or the contributor to the obligation to maintain confidentiality in this respect. In this respect, MDR information is provided. 4, contain data exclusively providing a standardised tax scheme, i.e. promoter or supporter.
MF encourages the submission of information on tax schemes within the time limit but also declares that in the event of the correct implementation of delayed information obligations within the period from 1 March 2019 to 30 April 2019 These delays will be treated as minor cases.
The Ministry of Finance provides MDR logical structures at the following link: https://www.mf.gov.pl/krajowa-administracja-skarbowa/dzialalnosc/struktury-mdr
Tax explanations dated 31 January 2019 are available at the following link: https://www.mf.gov.pl/c/document_library/get_file?uuid=864af355-652d-402d-93c6-ee9b905109c0&groupId=764034
Author:
Katarzyna Kołbuś - Editor leading RB Magazine. From Over 10 years related to industry press, including the Financial Gazette and portal ipip.com.pl, which is devoted to finance, taxation, law, politics and the economy. She graduated from Polish philology at the UMCS and the language editing of the text at the University of Warsaw.