THERE ARE TAX SCHEME DISCLOSURES THAT WILL NEED TO BE REFILED

 

The Cabinet has recently published a legislative proposal to amend various statutes, including the Corporate Income Tax Act, the Goods and Services Tax Act, and the Exchange of Tax Information (Other Countries) Act. Among other things, the Cabinet proposes changes to MDR reporting.

As of 1 April 2020, the NSP numbers (tax scheme numbers) assigned to cross-border schemes would become invalid by operation of law and any such schemes from between 25 June 2018 and 31 March 2020 would have to be reported again. The reason is that national and EU reporting standards are not consistent with each other. Comparing to the current law the retrospective reporting obligation will be extended onto helpers (service providers), while now it is incumbent only on beneficiaries (users) and promoters. Cross-border schemes will have to be refiled to the Head of National Revenue Administration ("Authority"):

  • by 31 May 2020 if reported by the promoter,
  • by 30 July 2020 if reported by the beneficiary,
  • by 31 August 2020 if reported by the helper.

Where the reporting obligation is incumbent on more than one entity, the scheme should be refiled by the same entity that originally reported it before the new regulations took effect.

Also, any special powers of attorney submitted to the Authority will, unless revoked until 31 March 2020, become special powers of attorney conferring the authority to act in all MDR matters. Accordingly, it is advisable to verify your MDR PoAs if their scope is as intended by you as the principal.

In addition, the new law would extend the list of countries and territories considered tax havens. Payments to entities in tax havens must always be reported to the Authority as tax schemes. According to the proposed law, account will have to be taken not only of the Polish list of tax havens, but also of the EU list of uncooperative jurisdictions for tax purposes.

The Cabinet proposes that the new law enter into force on 1 April 2020. We will keep you up-to-date on the progress of this legislation.

If these issues pertain to your business and you are interested in our assistance, please contact your WTS&SAJA consultant or our office.

Doradztwo Podatkowe WTS&SAJA Sp. z o.o. 

Bałtyk Building, 13th floor

ul. Roosevelta 22

60-829 Poznań

tel. (+48) 61 643 45 50

Warsaw Office

Central Tower, 22nd floor

Al. Jerozolimskie 81

02-001 Warszawa

This Newsletter is provided for general information purposes to keep you up-to-date with changes in tax law, tax rulings by authorities, case law of courts and interesting commentaries. Doradztwo Podatkowe WTS&SAJA shall not be held legally liable for any acts or omissions resulting from reliance on such information.

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