This is to alert you to a judgment of the Provincial Administrative Court in Poznań (“PAC”) dated 5 Dec 2019 (case no. I SA/Po 825/19) in relation to whether or not a private tax ruling can be had on matters relating to mandatory disclosure rules (a.k.a “tax schemes”).
PAC held that the tax authority (Dyrektor Krajowej Informacji Skarbowej) was right to deny a tax ruling on MDR laws and it was not within its powers to issue one.
PAC issued a written statement with reasons for its decision. The court held that a tax ruling may only be applied for in relation to those laws which form or create tax obligations, i.e. in relation to matters of substantive law. However, it may not be applied for in relation to laws of a procedural nature. According to PAC, Tax Code regulations (including Chapter 11a, which is concerned with mandatory disclosure rules) address only matters of procedure and therefore the tax ruling mechanism is not available for their interpretation.
The judgment means that, if in doubt about the meaning of Polish mandatory disclosure rules, the taxpayer will not be able to have its approach confirmed by the tax authorities and enjoy the assurance provided by tax rulings.
The judgment is not final and definitive yet. We will keep you up-to-date on the development of this case law.
If this issue pertains to your business and you are interested in our assistance, please contact us.
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