The introduction of a tax evasion clause to prevent tax avoidance by companies provides for a government draft novels Tax Ordinance.
The tax will be able to consider that the taxable person’s activity, e.g. the transaction, was undertaken primarily or only in order to reduce the tax. In that case, the tax will be set at the appropriate amount.
According to the government, the introduction of a clause will set limits to acceptable tax optimisation, and the change will have a positive impact on market competitiveness and ensure equal treatment for taxpayers operating in economic activity.
The clause is intended to prevent tax avoidance by companies - to prevent them from carrying out artificial and unreasonable economic activities by which they would try to circumvent the rules and achieve tax benefits.
The tax will be able to consider that the taxable person’s activity, e.g. the transaction, was undertaken primarily or only in order to reduce the tax. In that case, the tax will be set at the appropriate amount.
The draft provides that the clause would only apply if the advantage obtained by the taxable person as a result of the activities contested by the tax administration exceeded the amount in the tax year 100,000 PLN.
The Minister of Finance would issue so-called security opinions to ensure that certain activities of the taxpayer are not assessed as tax avoidance. The Board on Tax Avoidance is to be set up independent of the Ministry, giving an opinion on the disputed avoidance cases.
- In particular, there is an excessive, unjustified increase in the cost of obtaining revenue, which in turn results in a decrease in the amount of income to be taxed - the justification for the project is written in the explanatory memorandum.
The change is to enter into force after the end 30 days from the date of publication.
Source: Kurier PAP - www.kurier.pap.pl