Management is a taxing business
The Polish Confederation of Private Employers Lewiatan (PKPP) has petitioned the Constitutional Tribunal to examine whether a tax regulation that deprives managers of the right to be taxed at the 19 percent PIT rate is unconstitutional.
"We decided to use the ultimate tool," said Rafał Iniewski, a lawyer at PKPP. According to the organization, the tax regulation discriminates against managers who provide their management services within the business they run. They cannot tax their income from this activity by the 19-percent flat rate, as other entrepreneurs do. Even if a manager runs his own business that consists of managing a company, according to the regulation he executes his activity in person, which is not the same as a business activity.
"These regulations cause a frightening uncertainty. Why is management activity a personal one?" asks the CEO of Krośnieńskie Huty Szkła Krosno SA, Jan Kurkus. "Our management staff have managers' contracts, because the contract of employment does not reflect the real relations."
"We decided to use the ultimate tool," said Rafał Iniewski, a lawyer at PKPP. According to the organization, the tax regulation discriminates against managers who provide their management services within the business they run. They cannot tax their income from this activity by the 19-percent flat rate, as other entrepreneurs do. Even if a manager runs his own business that consists of managing a company, according to the regulation he executes his activity in person, which is not the same as a business activity.
"These regulations cause a frightening uncertainty. Why is management activity a personal one?" asks the CEO of Krośnieńskie Huty Szkła Krosno SA, Jan Kurkus. "Our management staff have managers' contracts, because the contract of employment does not reflect the real relations."
