On 31 December 2021 is past the time limit for publication of information on the tax strategy implemented 2020 and notice to the head of office of the address of the website on which the information was provided. The obligation applies to CIT taxpayers whose income exceeds 50,000,000 EUR and all tax capital groups.
Information covered by commercial, industrial, professional or production secrets has been excluded from the publication obligation. For failing to file a notice, they're threatening sanctions. However, any errors in information will not be punished.
On 1 January 2021 the provisions of the CIT Act have entered into force, requiring taxpayers to draw up and publish information on the tax strategy implemented. According to them, this information shall be published on the website by the end of the day. twelfth the month following the end of the tax year. Within this time limit, the head of the tax office should also be informed of the address of the website on which the information was provided.
According to the Ministry of Finance’s communication from 9 December 2020, taxpayers are required to publish information about the tax strategy 2020, by the end of December 2021
Biggest taxpayers
This obligation applies to taxable persons in question under Article 27b CIT laws, i.e. those whose revenue exceeds 50,000,000 EUR and tax groups of capital - regardless of the amount of revenue achieved.
Data scope
Information covered by commercial, industrial, professional or production secrets has been excluded from the publication obligation.
The CIT Act does not contain a closed data directory to be transmitted as part of the published information. However, it points to examples of data to be shown in the information.
One of them is information on transactions with related parties whose value exceeds 5% the balance sheet total of assets within the meaning of the accounting provisions, as established on the basis of the last approved financial statements of the company.
This limit should refer to the total value of all transactions that have been made by the taxpayer to related parties in a given tax year. First, The taxpayer should therefore sum up the transactions. If their value does not exceed 5% the balance sheet assets established on the basis of the last approved financial statements of the taxpayer are not included in the information on the tax strategy.
If the limit is exceeded, the transactions must be disclosed in the information. However, this does not mean that they must be recorded and described in detail.
It is sufficient to indicate the total value of transactions with the related entity concerned, a general description of the nature of the transaction (e.g. fees for management, marketing or advisory services) and an indication of the overall nature of the links between the entities. There is no need to determine the nature of each transaction. Nor is it necessary to publish, in relation to transactions with related parties, data violating the confidentiality of the taxpayer's company.
Penalties for lack, not for mistakes
The possible sanction (monetary penalty) provided for in the CIT Act concerns the failure to inform the U.S. Warden of the address of the website on which the information was posted. Any errors in the published information on the tax strategy are not criminal under the Tax Penal Code.