Half 2017 provisions on the so-called enlarged confiscation have entered into force. The new institution has significantly widened the framework for the existing possibility of a criminal or criminal property forfeiture.
A key change is the establishment of a reverse presumption mechanism. In some cases, a citizen has to prove that he has acquired legal property. Moreover, confiscation may concern not only the owners of a given item, but also the person with another title (e.g. lease).
Last year, prosecutors secured assets of total value ok. 400,000,000 PLN. Prosecutors occupy various goods, such as valuables, cash, means of transport. The new legislation concerns offences related to property of significant value (above 200,000 PLN), such as issuing empty invoices.
According to assumptions, expanded confiscation can only be used if someone acted intentionally rather than in case of a mistake. The Public Prosecutor's Office applies a specific presumption here: if a taxable person commits VAT fraud for a significant amount, his property shall be considered to come from a criminal offence and shall be seized. The owner or holder must then prove the legality of the origin of the goods himself.
Another possibility to protect against extended confiscation is to negate intent of action (e.g. invoice error). If someone demonstrates that, for example, he was not aware of the use of an “empty” invoice, the new rules could not be applied.
Confiscation expanded is a tool that may have a potentially high impact. Much depends on the interpretation of the prosecution in a given case and on the defence measures taken by the taxpayer.
Author:
Author:
Paweł Kula From 2016 related to Russell Bedford Poland. Graduated from law school. Tax Advisor No. 12969. He specializes in excise duties and transfer pricing records. Author of tax-related articles published on industry websites.