Tranfer prices are one with bigger tax challenges for more companies. As reported by the Minister of Finance, Russell Bedford was launched in the previous year. 287 the audit procedures in which the transfer prices were examined, 239 of which the decision of the authority of the first instance was concluded.
Increasing amounts of estimated income
- From completed control proceedings in 180 the cases of the tax authority's decision of the first instance have been estimated or the amount of the tax base has changed,” informs Leszek Dutkiewicz, partner at Russell Bedford. – As reported by MF, the total value of the estimate/change of the tax resulting from the above activities carried out in 2017 Total amount 2,333,935,938.34 PLN.
Dutkiewicz adds that the corresponding estimate for the previous period (year 2016) was ok. 650,000,000 In gold. Information on the number of employees involved in the transfer pricing issue is also of interest – according to the MF’s response to today’s employment is 232 The main area of specialisation is the area of transfer prices.
The Ministry also organised a forum to invite business representatives interested in the subject matter. The reports were so many that the meeting was postponed to meet in a larger room.
Transfer prices a challenge for more companies
Despite such extensive efforts in supporting entrepreneurs in the preparation of documentation and analysis, transfer prices are still a major challenge for more companies.
A recent study by KPMG on the tax system in Poland shows that 82% from surveyed representatives of management, financial directors, chief accounting officers and financial reporting and controlling heads considered to be problematic or very problematic. For only one percent of respondents, this was not a problem.
Similarly, the number of declarations and information necessary to meet tax obligations is problematic for entrepreneurs.
The taxpayer must be vigilant.
The situation of the taxpayer does not facilitate a constantly changing legal environment. Many companies find it difficult to keep up with new tax obligations.
According to published 3 April 2018 by the Minister of Finance ó in the general interpretation relating to January 2017 the provision on transfer pricing, the taxpayer is obliged to update the documentation annually.
The MF explains that financial transactions such as the granting of loans, loans, guarantees, guarantees are generally continued transactions in subsequent tax years, and therefore the tax documentation drawn up in the year of their commencement should be reviewed and updated in subsequent years.
It has been pointed out that, if these transactions occur during the execution of those transactions (e.g. a change in the maturity of the capital/interest, a change in the interest rate, a further tranche) the information on such changes should be included in the documentation.
- The purpose of such a provision does not raise doubts – it is understandable that all terms and conditions of the transaction and their changes should be accurately presented in the documentation," says Leszek Dutkiewicz. – The question arises, however, what should the taxpayer do after reviewing his documentation for the loan granted in 2017 is 2018 The transaction was executed as planned and no changes in the condition were there? Leave such documentation with 2017 for a further period without making any changes, can it, however, include an endorsement that the review has been made and changes to the condition have been found? The interpretation explains that in the absence of amendments, the obligation to update is not excluded from the wording of the provision ó, as indicated in the literal interpretation of the statement ‘review and update’, which means that the legislator expects the taxpayer to review the documents in his possession as well as its applicable update.