The efficiency, transparency and efficiency of the tax system will depend on what position the Polish economy will place, which we will leave to the coming generations. A transparent and friendly tax system is a condition for the development of entrepreneurship in Poland, as the local government of tax advisors cares about – these are the conclusions of discussions during the Tax Forum Poznań 2019 - Future taxes.
At the initiative of the Regional branches of the National Tax Advisors Chamber: Wielkopolska, Zachodniopomorskie, Lubuski, Śląski in days 13–14 May in Poznań held Tax Forum Poznań 2019, whose theme was the taxes of the future.
The forum was covered by honorary patronages: President of the Supreme Chamber of Control, Ombudsman of the Rights of Small and Medium Entrepreneurs, Marshal of Wielkopolska Voivodeship, President of Poznań City and National Board of Tax Advisors.
Regional branches of the Polish Chamber of Experts, the Association of Accountants in Poland and the National Tax Advisors Foundation were invited to cooperate.
„The meeting was attended 220 participants. As organizers, we invited more than 50 recognised experts representing governmental, scientific, economic organisations and practitioners dealing with day-to-day tax issues. Tax Forum Poznań 2019 This first such an event in Poland. Poznań as the capital city of Wielkopolska, traditionally associated with economy throughout the country, entrepreneurship was a natural choice for organising a meeting of the community interested in tax issues. This two-day, multi-thread, and intensive meeting was filled with practical knowledge coming from distinguished experts from various industries, active in third areas: laws, economics and tax education," said Marek Hoffman, Chairman of the Wielkopolska Branch of the National Tax Advisory Board.
The meeting of the Forum was attended by the patron Andrzej Dmowski, which spoke of new mechanisms to prevent VAT abuses and report tax schemes
„The Forum discussed an effective tax system. The technological revolution that is happening in front of us affects the conditions of both state administration and business. The way information is consumed, the way goods and services are purchased, the way people communicate with each other is changing. We live in times of great change – so we have to be ready for it in every area of life. So also in taxes. The Tax Forum was a starting point for discussion about having a real impact on what taxes would look like in the near and slightly more distant future," stressed Marek Hoffman.
In addition to tax advisers, auditors and accountants, there were also entrepreneurs using these professions.
Tax law and changes in the tax advisory market were the subject of the Forum and its main focus was, in particular, a broad discussion on the future of taxes, the role and future of the tax advisor profession and how to create a business-friendly tax system.
first, The official part of the Forum was led by Wiesława Moczydłowska, the press spokesman of the National Tax Advisory Board. The Forum was officially opened by Professor Adam Marianski, Chairman of the National Board of Tax Advisors (KRDP).
He pointed out that “contrary to some opinions, tax advisers do not want the tax system to be complicated, so they would have more work, but a system that is transparent and friendly to taxpayers and tax advisers themselves.
However, recent legislative changes raise doubts as to whether it is still possible to understand and understand tax law, both in view of the pace and quality of the changes."
The invited guests and representatives of partners and patrons took the floor.
Katarzyna Kierzek-Koperska, Vice President of the City of Poznań, said: “When I joined the profession of tax advisor years ago, I had a deep conviction that this is a profession of the future that will strongly assist entrepreneurs in the changing discipline of the law, which is tax law.
And of course, I was right, the tax advisor profession is developing year by year. Today, the National Chamber of Tax Advisors cooperates not only with other professional organisations, but also with government and local government administration.
I hope that this cooperation will develop even more efficiently, even more, because the more complicated tax law is, the more entrepreneurs need our help."
Dr. Anna Zaręba Farakik, Director of the Intervention and Process Department of the Ombudsman of Small and Medium Entrepreneurs read a letter from the Ombudsman of Small and Medium Entrepreneurs. Adam Abramowicz stressed that “taxes affect every entrepreneur and therefore constitute one from the most sensitive areas of business.
Any tax change must be carefully implemented and discussed, so I am pleased that you are undertaking a substantive and in-depth discussion on this issue. The amount of taxes and social security contributions depends on the income of entrepreneurs, and thus the possibility of further investing in their company and themselves.
Together, by pointing out flawed tax regulations and calling for rational changes, we can save many Polish companies.”
It is impossible to quote all those who speak here. Forum leader Wiesława Moczydłoewska welcomed the organizers above 70 Notable guests.
Among them were a number of scientific community, including Professor Hanna Litwinczuk, Chairman of the Scientific Council at KIDP and its members, as well as representatives of many organizations with which the National Chamber of Tax Advisors cooperates. Prof.
Witold Gabrsewicz, President of the Wielkopolska SKwP Branch, spoke on behalf of the Association of Accountants in Poland. Maciej Ostrowski, President of the Regional Council of the PIBR Branch in Poznań, spoke on behalf of the Polish Chamber of Auditors.
The introductory lectures were given by Prof. Adam Mariański, Chairman of the National Board of Tax Advisors and Prof. Bogumił Brzeziński, member of the Scientific Council at KIDP.
„In addition to sealing the tax system in recent years, namely, above all, the fight against VAT fraud, we have a number of changes in many substantive laws" - emphasised Prof. Adam Marianski. "The tax system in Poland is not simple and unpredictable," said Prof. Adam Mariański. He also stressed that the role of tax advisors would soon be radically different. This is primarily related to the digitalisation process. The increasing number of documents is already electronic and their analysis is also done electronically. According to Prof. Mariański, the role of tax advisors and the demand for their services will increase. one with a significant number of tax amendments. Tax regulations are changing systematically. This makes taxes impossible to predict. Prof. Marianski stressed that income taxes could be a political tool, especially in terms of the discretion of granting reliefs. The tax lord decides who to give these reliefs to. He pointed out that we are facing major changes in income taxation, as the Ministry of Finance has been working on a comprehensive reform of income tax laws for some time now. In place of the current PIT and CIT laws, new rules are to be introduced to regulate: taxation of labour income, taxation of economic activity and taxation of capital revenue.
Prof. Mariański stressed that there had been changes in general tax law, such as a change in the general clause against tax avoidance, which generally aims at the taxpayer choosing higher taxation. He also recalled changes in tax sanctions, administrative penalties, penalties under tax criminal law and reporting of tax schemes.
Speaking about the changes in tax rules, on the example of recently implemented regulations in the Polish tax system for reporting tax schemes, the President of the CoR stressed that "it is necessary to be prepared for risk, as in general, this is the way to change legislation, the quality of legislation and criminal-tax liability have reached the limits of absurdity.
If we are talking about reporting tax schemes, we have the highest penalty for not reporting schemes among the countries that have implemented the rules - 21,600,000 PLN For not reporting. In other countries it is several dozen or several hundred one thousand zł. So this repressiveness doesn't appear anywhere else.
All the more so, since reporting tax schemes includes, in the light of the explanations of the Ministry of Finance, almost every tax interview."
In his opinion, we are dealing with a very low level of legislation, with provisions written "on the knee", which do not provide stability, certainty of tax law. They also agree on the secret of professional tax advisers, and therefore the government of tax advisers along with lawyers, legal advisers, notaries has repeatedly called for them not to be accepted as violating the profession of tax advisers and other professions of public trust.
Speaking of how the profession of tax advisor will change Prof. Mariański stressed that the significant complexity of the tax system, further politicisation of income taxes, increased restrictiveness and repressiveness makes tax risks increasing, and therefore there is an important role for those who prevent this increased risk. This will mean an increasing demand for services provided by tax advisers, i.e. those who provide protection to the entrepreneur and reduce the tax risk.
„Tax advisers should remember that the digital economy is coming, and that means that some functions, some tasks will stop taking up much of the time, because they will be automated. Therefore, tax advice must prepare for these changes. But tax advice, according to Article 2 Tax advisory laws, namely providing support to the taxpayer, providing tax advice, representing the courts, ensuring a sense of tax security," stressed the CoR president.
„Today, entrepreneurs, in a time of restrictive, repressive changes, expect help in ensuring security, not to risk, not to bear tax liability, criminal liability and to be able to run their business freely. So the tax advisor is a person who prevents these problems, a person who understands business and knows how to advise against these risks," said Prof. Adam Marianski. All of this together, as Prof. Mariański stated, "is a result of increased interest of entrepreneurs in services provided by tax advisers, but also an increased interest in the pursuit of the profession of tax advisor".
In a lecture on the assessment of the tax system in Poland, in the context of recent legislative changes Prof. Dr. hab. Bogumił Brzeziński said that “we are dealing with an outstanding degeneration of the legislative process, because it cannot be that the Ministry of Finance says that there will be a new bill, and when it comes into force, we, dear taxpayers, will talk to you about what comes out of it and we will give some explanations and then maybe explain it.”
What are the forecasts for the tax system in Poland for the coming years? According to Prof. Brzeziński: “We can expect an increase in fiscal pressure and oppressive operation of the tax apparatus. "By giving new competences to tax authorities, I have the impression that the possibility of "dying" the taxpayer with tax authorities can be drastically reduced," said Prof. Brzeziński.
Prof. Bogumił Brzeziński pointed out that the more detailed the tax system is looked at, the more defective it is. The problem is the frequent changes in regulations, as well as their lack of precision and a large number of conflicting tax rulings issued by tax authorities. Prof.
Brzeziński stressed the large role of administrative courts. In his opinion, they often side with taxpayers. However, the problem of lack of precision in tax law remains. "The most sufferers are those entrepreneurs who have to deal with difficult and constantly changing tax law" - explained Prof. Brzeziński.
Experts predict that the repressivity of tax authorities will increase further. As an example, they provide, for example, the planned verification of economic operators and so-called self-employed. They are also afraid of imposing more and more penalties from the provisions of the Tax Penal Code.
Both first, and second The Forum held many discussion panels, debates and speeches.
The Forum included three Issues: law, economics and tax education. Each of them was divided into thematic blocks, which allowed participants to freely shape an individual lecture plan. Among the theme blocks were:
- tax protection mechanisms in the new draft Tax Ordinance (including: general principles of tax law and the Bill of Rights of the taxpayer; principle in dubio pro tributario; Ombudsman and Ombudsman; protection of the rights of the taxpayer and exchange of tax information with other countries; mechanisms for cooperation with the administration - tax agreement, mediation, cooperation agreement),
- directions for changes in income tax,
- tax law for: accountants, auditors, lawyers; qualifying examination for tax advisers,
- Local Government Units as VAT payers,
- audit and audit perspectives (including geopolitical and macroeconomic influences on economic development, taxation and audit; fake news in accounting; e-reporting - new challenges and responsibilities for management and owners),
- professional education of accountants – perspectives (including: risks of entrepreneurs in an unstable legal environment; new e-obligations for accountants and employers; new accounting technologies – use of blockchain system; challenges of accounting organisation in connection with changing laws and progressive digitisation),
- new VAT fraud prevention mechanisms,
- reporting of tax schemes,
- Succession - handing over the company in good hands.
Within these blocks, experts prepared special lectures and speeches, discussion panels. Some of the issues were of exceptional interest and sparked heated discussions.
„The participants of the Forum believed in the power of discussion and understood that the best conclusions were achieved by exchanging opinions and constantly searching for common areas connecting rather than dividing the parties involved. They were also convinced that the discussions directly contributed to the development of the tax system in Poland, and that everyone involved in the event could give a sense of the possibility of influencing the coming future. Speaking of the future, participants meant not only the coming years, but also the next generations," commented Marek Hoffman, president of the Wielkopolska KIDP Branch.
„The closing Forum replied to the participants that, in view of the increasing pace of change that we experience from day to day, we must be aware that the efficiency, transparency and, ultimately, the efficiency of the tax system will depend on the position of the Polish economy, which we will leave to the generations coming after us" - concluded Marek Hoffman.
Summing up the Poznań Tax Forum The future should be stressed that it was very intense two days, full of substantive knowledge, reflection on both tax law and the vision of the future for tax advisors and entrepreneurs themselves. Poznań, undoubtedly associated with business and economy, located in leading positions in city rankings, proved to be an ideal place for effective discussions about the tax system in times of major changes in the legal environment.
The organizers are inviting you next year!
Wiesława Moczydłowska, Press Secretary of the National Tax Advisory Board
Source: National Tax Advisory Chamber