President signs new harsh law on VAT frauds

President Andrzej Duda signed a new amendment to the penal code which makes VAT frauds exceeding PLN 10 million punishable by up to 25 years in prison. The new law will also allow multiple government agencies, including the Anti Corruption Bureau (CBA), Military Police, and Border Guard, to investigate such crimes. The penalties will be less severe if the suspects reveals all the details regarding the fraud. According to the interior ministry, which supported the bill, VAT frauds “cost the Polish budget sever billion złotys each year and can damage public finances.” Increasing revenue from taxes is one of the ways, the Polish government wants to pay for its budget-straining social policies. The law will come into force on March 1, 2017.