From 1 January 2019 new provisions introducing obligations to disclose and report tax schemes ( MDR) are in force. Although the legislation has been in force for almost six months, many operators still do not realize the obligations they have and until they should meet them.
The problem is serious that the new rules provide for severe administrative and fiscal sanctions for failing to comply with the obligations imposed, and the accumulation of financial penalties imposed on one entity can reach even 31,600,000 PLN.
five information you must remember about MDR
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The tax scheme has been given the normative definition indicated in the Act, which means that for MDR purposes this concept cannot be identified with its common understanding – normatively this concept is much broader than the tax advantage resulting, for example, from the application of tax optimization.
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In order to be required to report to the tax authorities, there need not be a tax advantage – in certain cases there will not even be an economic impact on the amount of the tax liability.
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The report should not only be submitted when tax optimization has been applied – tax authorities also request information in the event of recourse to the tax incentives.
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Reporting concerns all taxes and it does not matter whether the transaction is carried out for legitimate economic reasons – some business arrangements will self-impose the obligation to notify tax authorities.
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The provisions provide for retroactive reporting of diagrams:
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- cross-border first follow-up to their implementation 25 June 2018
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National first follow-up to their implementation 1 November 2018
At Russell Bedford, we developed a methodology for supporting our customers, taking into account the specific legal requirements imposed on obliged entities to report. Contact us if you need help in this area.
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