The NSA has concluded the current dispute which the tax authorities have held with taxpayers to charge fuel costs to flat-rate revenues for the use of a company car for private purposes. Judgment of the Chief Administrative Court of 10 July 2018 explicitly confirmed that flat-rate income also includes fuel. The NSA thus confirmed the earlier jurisprudence line of the Provincial Administrative Courts.
The dispute between taxpayers and tax authorities started with the introduction into the PIT Act in Article 12(2a), which determined the monetary value of the unpaid benefit to a worker for the use of a business car for private purposes.
This value is determined from the engine capacity of the car: up to 1600 cm3 is it 250 PLN, above 1600 cm3 400 PLN. The tax authorities were of the opinion that this amount does not cover the value of fuel and should constitute an additional income that the employee received from the use of the car.
The NSA did not share this view presented by the tax authorities and stated that flat-rate income covers all the costs of operating the car, including fuel. The tax authorities in individual interpretations have tried hard to demonstrate that the flat-rate income amounts include fees incurred for OC, AC, all repairs, tire replacements, but no fuel anymore. The NSA considered such an interpretation of the provision from Article 12(2a) PIT for irrational.
Date: II FSK 1185/16
Author:
Mikołaj Stanisławski
From 2017 Associated with Russell Bedford Poland. In 2007 graduated from the Faculty of Law and Administration of the University of Warsaw. In years 2008-2011 he made an attorney's application. From 2011 entered on the list of lawyers at the District Bar Council in Warsaw. In 2016 He graduated from the Postgraduate Tax Studies and Tax Law of the University of Warsaw. Specializes in tax and tax matters.