Draft law Tax Ordinance provides for the introduction of a new alternative dispute settlement principle between taxpayers and tax authorities, i.e. mediation in the tax procedure. The purpose of mediation will be to resolve a dispute between two or more parties involving the party third, I mean, the so-called mediator.
The institution of mediation is already known in the Code of Administrative Procedure, as well as in the Act on proceedings before administrative courts. This form is a novelty in Polish tax law. Applicable Act dated 29 August 1997 Tax Ordinance (Journal of Laws of 1997, item 926) does not regulate rules on mediation in tax matters.
The project promoter, following the tax laws in other countries, decided to introduce regulations on mediation in the tax procedure into the draft law. The basic premise of mediation is the contractual settlement of tax matters between the taxpayer and the tax authority.
According to the project promoter, the introduction of a new principle of settlement of disputes will allow for a much faster completion of proceedings.
Tax mediation will be a process mechanism that will facilitate communication between the tax administration and the taxpayer. The parties will be free to choose a joint mediator from the list maintained by the Head of the National Tax Administration
Individual approach
It is worth noting that the tax authority, which will aim to settle the matter in agreement with the taxpayer, will not be obliged to conclude an agreement.
It would be an obligation for the body to make efforts to settle the matter with the taxpayer in a fair manner, using tools such as informing the taxpayer about the possibility of a contract and thus alternatively resolving the tax dispute.
However, the project promoter reserved the lack of an obligation to reach an agreement because not all tax matters could be amicably resolved. It should also be remembered that not all cases will be subject to mediation.
The main determinant of achieving the objective of settling the case will be the question relating to the type of case and the applicable law.
Mode of mediation
The initiation of mediation will be to serve the mediator with the order to refer the case to mediation by the tax authority. The mediator will be selected voluntarily by the parties from the list led by the Head of National Tax Administration.
After the initiation of the procedure, the mediator shall hold a joint or individual preliminary meeting with the party and the tax authority. This meeting would take place at a jointly agreed mediator, tax authority and date side and place. During the meeting, the mediator would explain the objectives and principles of mediation.
The fact that one of the main principles of mediation will be the principle of voluntary participation in mediation.
Once all necessary conditions are met, mediation will be conducted as one or more mediation meetings with the tax authority and the parties, at a pre-established place and time. It is very important and at the same time good information for taxpayers that if a particular case is thoroughly justified and the mediation cannot be carried out as a result of it, or is significantly impeded, the mediator will be able, with the agreement of the tax authority and the parties, to conduct mediation indirectly, providing each of them with information and proposals for a tax agreement.
In conclusion, tax mediation will be a procedural mechanism that will facilitate communication between the tax administration and the taxpayer. The parties will be free to choose a joint mediator from the list maintained by the Head of the National Tax Administration. The principle of mediation will be voluntary participation in mediation.
Author: Paweł Boś, Law student at Leon Kozminski Academy in Warsaw, employee Russell Bedford