Payment congestion is one the biggest problems of the Polish economy. Over 80% Polish entrepreneurs do not receive their receivables on time. This often causes them to be unable to pay their own debts.
"Payment problems can lead to the collapse of many companies, especially the smaller ones. It is therefore necessary to address this problem. Provisions and arrangements will be amended to reduce payment deadlines and at the same time provide for sanctions for those who do not pay. Micro, small and medium-sized entrepreneurs will be particularly protected. The penalty will be imposed by the Office for Competition and Consumer Protection" - said the President of UOKiK Marek Niedy.
The Act amending certain laws to limit payment congestion is to enter into force 1 January 2020 Friday 19 July The Sejm will vote on the Senate amendments, and after their adoption, the legislative act will be submitted to the President's signature.
The Act contains a whole package of legal solutions (tax changes, civil law and administrative solutions) aimed at reducing payment congestion. one of important changes is the shortening of payment deadlines in transactions between traders or other entities covered by the Act.
Public entities will have to settle their claims in 30 days, exception is provided for medical institutions that will have 60 days for payment. In the case of transactions where micro, small or medium-sized companies are waiting for money and their debtor is the larger counterparty, the payment deadline must not exceed 60 days.
The amount of interest that an entrepreneur may require has also been increased if the other party to the commercial transaction does not pay for the goods or services.
Role of UOKiK
Excessive delays in payments will threaten the intervention of the Office for Competition and Consumer Protection. UOKiK will be able to react if the sum of outstanding cash benefits of the entrepreneur within 3 the following months shall be at least 5,000,000 PLN to 2021 and 2,000,000 PLN in later years.
Proceedings will be initiated ex officio and will have to be completed within a period 5 months. Notification of the lack of payment within the time limit will be possible to submit to the UOKiK any, both an entrepreneur who has fallen victim to practices and a person who suspects that the entity does not pay its counterparties.
In the course of the procedure, the Office will monitor payments from two the years preceding the initiation of the procedure. The penalty will be calculated according to formula* on the basis of the late benefits and the delay period at the statutory interest rate for late commercial transactions.
A convicted entrepreneur will be able to request that the case be reconsidered by the UOKiK. He will then be able to lodge a complaint with the provincial administrative court.
When will the punishment be lower and when will it be higher?
"We will respond strongly to late payments, but there will also be mitigating circumstances. The penalties imposed may be reduced if the debtor settles his arrears. Those who themselves are victims of congestion, we will not punish at all. There will be no indulgence for repeat offenders – these will have to pay more," says President of UOKiK Marek.
The Authority will be able to reduce the penalty by 20%, if the entrepreneur repays the claims with interest within 14 the days following notification of the decision to initiate the procedure.
UOKiK will also be able to apply an additional reduction by 10%, if the debtor immediately pays the penalty and waives the right to apply for review by the office. Penalties will not be given to entities that do not pay their creditors because they do not receive money from their debtors.
On the other hand, if the UOKiK finds that the previously punished entrepreneur is again allowing excessive delays – another imposed penalty may be increased by 50%
UOKiK will be able to carry out checks with the entrepreneur and request the necessary information and documents. The changes also establish closer cooperation than before between the Office for Competition and Consumer Protection and the National Tax Administration.
UOKiK will be able to obtain information that will avoid initiating proceedings against entrepreneurs who pay dues on time, and the activities of the Office will focus on entities that create congestion. President of UOKiK every year, until the end first In the quarter, he will report to the Prime Minister on the proceedings carried out.
*JKP (punishment) = WW × n/365 × OU
JKP — unit penalty for non-fulfilled or satisfied after the date of the cash provision, WW — value not fulfilled or fulfilled after the date of the cash benefit, n — expressed on days of the period which expired from the date of maturity not fulfilled or fulfilled after the date of the cash benefit, to the last day of the period concerned, or to the date of its fulfilment if the cash benefit has been fulfilled during the period concerned, OU — statutory interest for delay in commercial transactions, set at the date of the decision to impose an administrative penalty.