Draft bill - Tax Ordinance (together with the draft Act Provisions introducing the Act Tax Ordinance and the Law on the Ombudsman of the Rights of the taxpayer) regulates, among others: general principles of tax law, forms of settlement of tax matters on a consensus basis (i.e.
tax agreements, mediation, consultation of the tax consequences of transactions) and provisions protecting the taxpayer when complying with information from tax authorities.
The new rules prohibit the taxpayer from ruling against him, the right to correct the declaration before the conclusion of the tax procedure, the possibility of waiving an appeal against a decision in favour of a complaint to a court, or longer time limits for appeal and complaint.
Improved efficiency and efficiency of tax collection will be achieved, inter alia, through the introduction of an effective model of tax proceedings and the principle of settlement of cases, as well as the dissemination of the use of electronic communications or the arrangement of rules for the application and moderation of order penalties.
Selected solutions for the new Regulation
• General principles of tax law
The draft is structured and complemented by directional directives for tax settlement, including some present only in jurisprudence and doctrine (e.g. the principle of settlement). This is the implementation of the repeated request to order general tax law. This solution will strengthen the protection of the rights of the taxpayer, in particular in conjunction with the appointment of the Ombudsman for the Rights of the taxpayer, who is on their watch.
• Interaction
A Co-operation Programme was proposed, the essence of which will be the cooperation of the taxpayer with the tax authority in order to properly fulfil tax obligations.
The co-operation will be based on the transparency of the taxpayer’s activities, which will inform the tax authority of any relevant issues that may affect the amount of taxes it pays.
The result of such cooperation will be knowledge on the part of the tax administration about the activities of the taxpayer which affect the amount of taxation and on the part of the taxpayer about the correctness of its tax settlements.
• Tax agreement
Tax disputes could be resolved through consensus. The tax agreement may be concluded in particular in the event of difficult to remove doubts as to the facts of the case. The list of possible areas of agreement is open.
Tax agreements will be concluded after the agreement between the taxpayer and the tax administration and documented by a protocol stating, inter alia, the scope and content of the arrangements made. The solution will put an end to some disputes and ensure that the taxpayer voluntarily executes the tax obligation.
• Mediation
Tax mediation (a procedure for resolving disputes involving a mediator) will be a procedural mechanism that will facilitate communication between the tax administration and the taxpayer. The parties will freely select a joint mediator from the list maintained by the Head of the National Tax Administration.
• Case handling
The taxpayer will be able to bring a reminder on the ex post chronicity, i.e. to establish the existence of chronicity as of the date of its transfer. For the taxpayer, this may be important for any compensation claim. The tax administration will be obliged to settle the matter within the prescribed time limit.
Only if new facts or new evidence, which are relevant to the case, require a sufficient length of proceedings (not known at the time of the appointment of the time limit), will the higher authority be allowed to set a time limit of sufficient length. Shortened to 14 the date of the review.
The solution will strengthen confidence in the tax administration.
• Interpretations and information on tax legislation
The possibility was introduced for the authority to give an interpretation with a legal question to the Supreme Administrative Court. As a result, the number of complaints addressed to administrative courts will decrease.
• Consultation of the tax effects of transactions
A consultation procedure has been introduced in which the applicant and the tax authority will be able to agree on past tax settlements before any dispute arises. In such proceedings, tax decisions will be issued binding on the tax administration and the taxpayer to be challenged.
In future tax proceedings, the tax authority will not be able to take a position other than those expressed in the decision. The use of this procedure will be paid. The solution will provide taxpayers with a valuable instrument for obtaining legal certainty in complex and relevant matters.
There will also be a reduction in the number of disputes.
Solutions included in the new Tax Ordinance will enter into force 1 January 2021 The proposed act will replace the existing law with 29 August 1997 – Tax Ordinance.
Ombudsman for the Rights of the taxpayer
„Today the Government's Law on the Ombudsman of the Rights of the taxpayer is another step in creating a friendly tax administration. The Ombudsman will be an independent expert to whom the taxpayer will be able to ask for assistance in contacts with the tax administration," Minister Teresa Czerwińska announced.
The Ombudsman, as a high-level tax law expert, will uphold the rights of taxpayers, particularly respect for the principle of trust in public authority, impartiality, equal and equitable treatment, respect for the legitimate interests of taxpayers and the rationality of tax authorities to act towards them.
The bill sets out a catalogue of tasks and powers of the Ombudsman, including the right to:
- submit proposals to public authorities, organisations or institutions to ensure effective protection of the rights of the taxpayer, to strengthen the consistency of tax law, to remove unnecessary procedures or formal requirements or to improve the handling of cases,
- analysing the way tax authorities handle complaints and requests from taxpayers (on this basis, the Head of National Tax Administration will be able to present proposals to improve the service of taxpayers),
- to request the competent authorities to take a legislative initiative or to issue or amend legislation on tax matters,
- to participate as mediator in tax and administrative proceedings;
- to apply to the competent authority for an individual interpretation in the case of a taxable person who is not able to make such a request on his own or who is in excessive difficulty,
- to conduct educational and information activities in the area of tax law, in particular concerning the rights and obligations of the taxpayer under tax law.
The Ombudsman will act on his own initiative or on request, including taxpayers, business organisations or professional self-government. The authorities and bodies to which the Ombudsman will ask for assistance will be obliged to cooperate and provide free assistance. He will also cooperate with the Ombudsman of Small and Medium Entrepreneurs on the principles set out in the Act.
The bill contains a closed and narrow catalogue of reasons for recalling a person acting as a spokesman – such a record guarantees his independence. The bill also includes the Bill of Rights of the taxpayer, which is a friendly and accessible guide to tax law.