Finance Minister's anti-crisis concepts begin to take a concrete shape

On Friday the Sejm passed amendments to the tax laws, which are part of Finance Minister Kolodko's package of anti-crisis measures. These changes introduce differed tax payments for some companies and allows banks to count reserves created for bad loans as costs. Small companies will have a bit more freedom to maneuver as they will be able to pay VAT on a quarterly basis. The amendment encompasses bills on income tax on legal persons (CIT) and on natural persons (PIT) as well as on lump income tax. The tax credit solution allows small companies created after the bill becomes law, and which take on not less than five employees, to be exempt from paying tax in the second year of operation. However these taxes will have to be paid back over the next five consecutive years and the companies will have to maintain the employment level. Parliament also passed a bill whereby banks will have to report all transactions above euro 15,000 to the general inspector of financial information to help fight against money coming from unknown or illegal sources. (Rzeczpospolita, Aug 31 - Sept 1, p. B2) P.W.