The bill amending the Income Tax Act imposed a new obligation to publish information and tax strategy, implemented by large taxpayers.
The obligation is to take place under the motto of sealing operations. The government will present it in the context of CSR, or corporate social responsibility, with which, of course, the new tightening has absolutely nothing to do with it. Let's see what it looks like in practice.
Who will be required?
Act dated 28 November 2020 amending the Personal Income Tax Act, the Corporate Income Tax Act, the Flat-rate Income Tax Act on certain revenues generated by individuals and certain other laws (Journal of Laws of 2020, item 2123) on the tax strategy, states that those required to draw it up and make it public will be
1) tax groups, regardless of the amount of revenue achieved;
- tax payers other than tax groups with income generated in the tax year in question Under section 1, She's out of the equation. 50,000,000 EUR converted into gold at the average euro rate announced by the National Bank of Poland on the last working day of the calendar year preceding the year of the publication of individual taxpayer data.
Such a wide range of information, the transfer of which by law often violates the principle of economic freedom, is to be done through the taxpayer's website
The information on the tax strategy to be implemented by the tax group is to contain information for the tax group and for each of the companies in its composition.
The provisions shall not apply to taxable persons who are party to the interoperability agreement concluded with the Head of the National Tax Administration.
What to include information on the tax strategy
The information on the tax strategy to be implemented shall include, taking into account the nature, nature and size of the activities carried out, in particular:
- (b) voluntary forms of cooperation with the authorities of the National Tax Administration,
- information on the implementation of tax obligations by the taxpayer in the territory of the Republic of Poland, together with information on the number of information provided to the Head of National Tax Administration on the tax schemes in question under Article 86a(1)(10) Tax Ordinance, broken down by the taxes concerned,
- information on:
(a) related party transactions within the meaning of Article 11a(1)(4), whose value exceeds 5% the balance sheet total of assets within the meaning of the accounting rules established on the basis of the last approved financial statements of the company, including non-tax residents of the Republic of Poland,
(b) planned or undertaken by the taxable person restructuring measures likely to affect the tax liability of the taxable person or associated entities within the meaning of Article 11a(1)(4),
4) information on requests made by the taxable person for:
- (a) the general tax interpretation in question under Article 14a(1) Tax Ordinance,
- (b) the interpretation of the tax law in question under Article 14b Tax Ordinance,
- (c) the binding rate information referred to under Article 42a Goods and Services Tax Act,
- (d) the binding excise information in question under Article 7d(1) Act dated 6 December 2008 on excise duty (Journal of Laws of 2020, items 722, 1747),
- information on the tax settlement of the taxpayer in the territories or countries applying harmful tax competition as indicated in the implementing acts issued on the basis of Article 11j(2) and based on Article 23v(2) Act dated 26 July 1991 on income tax on individuals and in the notice of the Minister responsible for public finances issued on the basis of Article 86a(10) Tax Ordinance – excluding information covered by commercial, industrial, professional or production secrets.
How to provide information
Such a wide range of information, the transfer of which by law often violates the principle of economic freedom, is to be carried out through the taxpayer's website in Polish, by the time of the end twelfth the month following the end of the tax year. In a year 2020 the tax strategy should be published by 31 December 2021 Where the taxpayer does not have its own website, the tax strategy shall be made available in Polish on the website of the related party.
Furthermore, the taxable person is obliged to transmit by electronic means within the meaning of Article 2(5) Act dated 18 July 2002 on the provision of electronic services (Journal of Laws of 2020, item 344) to the head of the tax office competent for the taxpayer, the address of the website on which he will publish the strategy.
There will be penalties for lack of publication of the strategy
In the event of non-compliance, the taxable person shall be subject to the monetary penalty imposed by the head of the tax office competent to the taxable person by decision. It can take to 250,000 PLN.