Split payment and the legal situation of financing banks
The split payment mechanism for business-to-business transactions entered into force on 1 July 2018. Introduction of this mechanism was motivated by the aim of closing gaps in the tax system. But split payment affects not only the situation of VAT payers, but also banks.
Possible growth, but also more problems: Split payment in factoring
Factoring is growing rapidly in Poland. According to the Polish Factors Association, the value of receivables that are the subject of factoring is growing year on year by an average of 18%. Introduction of split payment may strike at the financial liquidity of firms seeking financing, but it may also drive growth in the factoring industry. But every rose has thorns. Split payment complicates factoring transactions and introduces new risks for factors.
Am I entitled to an appeal in a tax case?
The principle of a two-instance system is a fundamental principle in public authority proceedings. At times this principle is severely limited, and at times merely fictitious.
Who is intended to benefit from 50% tax costs? Certainly not taxpayers
The right to claim higher tax costs at 50% has recently been one of the most problematic issues in the relationship between tax authorities and taxpayers. At the beginning of the year this limit was raised twice, but the list of persons entitled to claim such costs was narrowed. Moreover, the tax authorities are consistently doing everything they can to stop taxpayers from taking advantage of this rate. So who is the 50% write-off intended for, and what are the criteria for eligibility?
From 2018 income of management board members to be taxed at 18% and 32%
Under a proposed amendment to the Personal Income Tax Act, from 1 January 2018 the compensation of management board members will be taxed at regular rates (18%/32%), whether paid in cash or bonuses in the form of derivatives of financial instruments or other property rights.
State Treasury’s liability in damages for defective tax decisions
The defectiveness (unlawfulness) of a tax decision isn’t enough. Injury must also be proved, and an ordinary causal link between issuance of the decision and the injury.
Liability for representations and warranties concerning the condition of the company in a corporate sale
Making false representations about the state of tax liabilities of a company being sold may make it necessary to cover the buyer’s losses, even years after the transaction.
When is tax due on elimination of joint ownership of real estate?
Elimination of joint ownership is not always tax-neutral. This should be taken into consideration when deciding how to conduct the transaction.
Changes in taxation of in-kind contributions: Tax incentives for innovators
A new package of tax incentives under the programme described in Poland’s “Innovation Whitepaper” went into force at the beginning of 2017. This legislative move is a bow to researchers and encourages further innovative projects.
Additional tax obligation for incorrect VAT settlements
The “big amendment” to Poland’s VAT Act entered into force on 1 January 2017. As the popular title indicates, numerous changes were made in the existing VAT Act. The changes were designed to close loopholes in the law and thus improve VAT collections.
Weaker protection of individual tax interpretations
From the start of 2017, the protection provided by previously issued individual tax interpretations became doubtful. The problem particularly concerns protection when tax advantages are obtained after 1 January 2017 in connection with adjustment to the factual situation or future events which were the subject of the individual interpretation.
Changes in tax treaties on the horizon
In 2013 an OECD forum began work on the BEPS project, comprising 15 actions for tightening the international system of tax treaties and preventing tax avoidance by taxpayers exploiting loopholes in tax treaties. These measures cover a broad spectrum of issues connected with taxation of international trade.
