Introducing Lawyer Online
In cooperation with Miller Canfield, the WBJ has recently launched "Lawyer Online," a free of charge service for the readers of the WBJ. By clicking on the WBJ website (www.wbj.pl) and then clicking on Lawyer Online, readers can now submit questions regarding commercial and corporate law. Within a week of submitting a question, an answer will appear on the WBJ website.
Questions will be selected based on the extent to which they apply to commercial and corporate law and whether they are of interest to WBJ readers. Issues not related to commercial and corporate law will not be answered. In order to submit a question, readers must first read and agree to the Terms of Use attached to the Lawyer Online page.
Now, let's take a look at some of the questions that we have already received, along with a sample of our answers...
1) A new bankruptcy law was recently enacted in Poland. What are the most significant changes from the previous law?
The new Act on Bankruptcy and Remedy Proceedings (the "Bankruptcy Code"), enacted on 1 October 2003, not only consolidates Poland's various bankruptcy regulations into one coherent law, but also introduces a number of new legal institutions designed to enhance the position of creditors, whilst at the same time providing debtors with the ability to restructure their debts in order to avoid total liquidation. The Bankruptcy Code replaces two laws enacted in 1934, the Law on Bankruptcy and the Law on Arrangement Proceedings, in addition to incorporating other bankruptcy regulations previously found in other areas of the law, including banking and insurance regulations. The Bankruptcy Code does not provide for "personal" bankruptcy.
In contrast to the previous regulations, the Bankruptcy Code no longer provides for separate bankruptcy and arrangement proceedings. If the debtor is insolvent, the court will declare the debtor bankrupt. Bankruptcy proceedings may include the liquidation of the debtor's assets, or the restructuring of the debt in order to avoid complete liquidation. The choice of which type of bankruptcy depends on......
2) I am a developer, and one of my contractors recently demanded that I give him a payment guarantee. Am I required to do this by law?
Yes and no. On 7 November 2003 the new Act on Construction Payment Guarantees took effect, on the basis of which developers, or for that matter investors, are required to post a payment guarantee upon the request of the contractor. The Act provides contractors with the right to request a payment guarantee, with such guarantee intended to ensure that the investor will pay on a timely basis pursuant to the terms of the construction contract. Failure to post the payment guarantee will......
3) I tried to return a Christmas gift to the retailer last week, but the manager refused to give me a refund. Is this legal?
Herein lies the difference between what is legal and what makes good business sense. In accordance with EU Directive 1999/44, Poland last year enacted the Consumer Sale Act. This Act provides consumers with certain rights to return a product within a prescribed period of time (up to 2 years) if the product is defective or otherwise does not conform to its advertised use. Several restrictions apply to this right of return, but in general the retailer must either refund, replace or repair the defective product. Unfortunately, if you do not like the new pink sweater that your wife bought you for Christmas, you are at the mercy of the retailer. Most retailers will allow customers to return unwanted gifts within a certain period of time, either for a refund or..........
4) Is it true that the rate of personal income tax has been reduced to 19%?
No. Most likely you are referring to the recent reduction in corporate income tax which, as of 1 January 2004, has been reduced to 19%. However, it is possible that many individuals engaged in certain business activities may be able to take advantage of this lower rate as well. An individual who conducts an economic activity may choose to pay the new flat rate tax of 19% on his or her income generated by an economic activity. Taxpayers who decide to take advantage of this lower flat rate will not be able to claim any other exemptions or deductions, except for social security and health insurance contributions. An individual who opts to use this lower flat rate will not be able to file a joint tax return with his or her spouse, nor claim tax benefits provided to single parents. Most of the exemptions have been........
5) Can you recommend a good divorce attorney?
No. We will only answer questions related to commercial or corporate law. If you want to divorce your wife, you will need to hire an attorney with experience in this type of law. In any case, my wife would kill me if I started to give that kind of advice.
6) I'm a British citizen. Will I still need to obtain permission to purchase real estate in Poland following EU accession?
The answer depends on the type of real property and the manner in which you would like to acquire it. In general, EU citizens will no longer have to obtain a permit from the minister of interior in order to purchase real property in Poland, subject to certain exemptions and derogation periods negotiated by Poland in the Treaty of Accession, such as the purchase of vacation homes and farmland, to name just a few......
In order to read the complete answers to these and other questions submitted by our readers, just click on the WBJ website. We look forward to receiving your questions!
Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki & Partners.
Questions will be selected based on the extent to which they apply to commercial and corporate law and whether they are of interest to WBJ readers. Issues not related to commercial and corporate law will not be answered. In order to submit a question, readers must first read and agree to the Terms of Use attached to the Lawyer Online page.
Now, let's take a look at some of the questions that we have already received, along with a sample of our answers...
1) A new bankruptcy law was recently enacted in Poland. What are the most significant changes from the previous law?
The new Act on Bankruptcy and Remedy Proceedings (the "Bankruptcy Code"), enacted on 1 October 2003, not only consolidates Poland's various bankruptcy regulations into one coherent law, but also introduces a number of new legal institutions designed to enhance the position of creditors, whilst at the same time providing debtors with the ability to restructure their debts in order to avoid total liquidation. The Bankruptcy Code replaces two laws enacted in 1934, the Law on Bankruptcy and the Law on Arrangement Proceedings, in addition to incorporating other bankruptcy regulations previously found in other areas of the law, including banking and insurance regulations. The Bankruptcy Code does not provide for "personal" bankruptcy.
In contrast to the previous regulations, the Bankruptcy Code no longer provides for separate bankruptcy and arrangement proceedings. If the debtor is insolvent, the court will declare the debtor bankrupt. Bankruptcy proceedings may include the liquidation of the debtor's assets, or the restructuring of the debt in order to avoid complete liquidation. The choice of which type of bankruptcy depends on......
2) I am a developer, and one of my contractors recently demanded that I give him a payment guarantee. Am I required to do this by law?
Yes and no. On 7 November 2003 the new Act on Construction Payment Guarantees took effect, on the basis of which developers, or for that matter investors, are required to post a payment guarantee upon the request of the contractor. The Act provides contractors with the right to request a payment guarantee, with such guarantee intended to ensure that the investor will pay on a timely basis pursuant to the terms of the construction contract. Failure to post the payment guarantee will......
3) I tried to return a Christmas gift to the retailer last week, but the manager refused to give me a refund. Is this legal?
Herein lies the difference between what is legal and what makes good business sense. In accordance with EU Directive 1999/44, Poland last year enacted the Consumer Sale Act. This Act provides consumers with certain rights to return a product within a prescribed period of time (up to 2 years) if the product is defective or otherwise does not conform to its advertised use. Several restrictions apply to this right of return, but in general the retailer must either refund, replace or repair the defective product. Unfortunately, if you do not like the new pink sweater that your wife bought you for Christmas, you are at the mercy of the retailer. Most retailers will allow customers to return unwanted gifts within a certain period of time, either for a refund or..........
4) Is it true that the rate of personal income tax has been reduced to 19%?
No. Most likely you are referring to the recent reduction in corporate income tax which, as of 1 January 2004, has been reduced to 19%. However, it is possible that many individuals engaged in certain business activities may be able to take advantage of this lower rate as well. An individual who conducts an economic activity may choose to pay the new flat rate tax of 19% on his or her income generated by an economic activity. Taxpayers who decide to take advantage of this lower flat rate will not be able to claim any other exemptions or deductions, except for social security and health insurance contributions. An individual who opts to use this lower flat rate will not be able to file a joint tax return with his or her spouse, nor claim tax benefits provided to single parents. Most of the exemptions have been........
5) Can you recommend a good divorce attorney?
No. We will only answer questions related to commercial or corporate law. If you want to divorce your wife, you will need to hire an attorney with experience in this type of law. In any case, my wife would kill me if I started to give that kind of advice.
6) I'm a British citizen. Will I still need to obtain permission to purchase real estate in Poland following EU accession?
The answer depends on the type of real property and the manner in which you would like to acquire it. In general, EU citizens will no longer have to obtain a permit from the minister of interior in order to purchase real property in Poland, subject to certain exemptions and derogation periods negotiated by Poland in the Treaty of Accession, such as the purchase of vacation homes and farmland, to name just a few......
In order to read the complete answers to these and other questions submitted by our readers, just click on the WBJ website. We look forward to receiving your questions!
Paul Fogo is a senior attorney with Miller, Canfield, W. Babicki & Partners.
