Firms asking for stricter control from the tax office
There are a growing number of companies in Poland opting for binding rulings from the tax office.
"Almost every tax regulation can be logically interpreted in at least two manners," says Mariusz Marecki, senior manager at the tax litigation team in PricewaterhouseCoopers. According to Marecki, small- and medium-sized companies usually ask for tighter interpretation in connection with transactions not included in the company's core activities. Large companies are usually unsure of how to treat taxation in mergers, takeovers, and building structures.
It is mainly these large players that are interested in having restrictive fiscal regulation. According to Józef Banach, a counselor at PricewaterhouseCoopers' tax department: "They are not that afraid of the control that might be triggered by applying for the interpretation. We took the idea from Hungary. Initially, taxpayers were very cautious, fearing that the interpretations they receive would be negative. However, interest in them is growing, especially in big tax offices. This is a very democratic solution - everyone can ask about what they like."
"This institution functions in almost all OECD countries. Poland also needs an instrument to fill in the loophole between legislation and the administrative and courts' verdicts," says Henryka Bochniarz from the Polish Confederation of Private Employers (PKPP).
Józef Banach praises Polish tax offices for the quality of their work. They have three months for preparing the interpretation and two months for responding to a complaint, and they usually stick to their deadlines.
"Almost every tax regulation can be logically interpreted in at least two manners," says Mariusz Marecki, senior manager at the tax litigation team in PricewaterhouseCoopers. According to Marecki, small- and medium-sized companies usually ask for tighter interpretation in connection with transactions not included in the company's core activities. Large companies are usually unsure of how to treat taxation in mergers, takeovers, and building structures.
It is mainly these large players that are interested in having restrictive fiscal regulation. According to Józef Banach, a counselor at PricewaterhouseCoopers' tax department: "They are not that afraid of the control that might be triggered by applying for the interpretation. We took the idea from Hungary. Initially, taxpayers were very cautious, fearing that the interpretations they receive would be negative. However, interest in them is growing, especially in big tax offices. This is a very democratic solution - everyone can ask about what they like."
"This institution functions in almost all OECD countries. Poland also needs an instrument to fill in the loophole between legislation and the administrative and courts' verdicts," says Henryka Bochniarz from the Polish Confederation of Private Employers (PKPP).
Józef Banach praises Polish tax offices for the quality of their work. They have three months for preparing the interpretation and two months for responding to a complaint, and they usually stick to their deadlines.
