Corporate tax evasion costs budget PLN 10 bln

According to estimates by Klub Jagielloński, corporate tax evasion stemming from transferring revenues to tax havens costs Poland PLN 10 billion annually. The report says that losses are due to the institutional weakness of taxing authorities. Since transfer pricing audits are not preceded by risk analysis, entities are selected on a random basis, and not chosen in relation to actual tax avoidance risk. Taxing authorities have no access to basic tools for transfer pricing control, such as databases of financial statements or databases that expose capital and personal links between various entities.