The government is taking on corporate tax evaders and plugging loopholes

The Sejm voted on Friday to amend the current corporate income tax (CIT) law to prevent companies which are registered in tax havens rigging their profits in order to pay less tax. The core reform of the bill was conducted last year and the changes being introduced at the moment are to plug loopholes and bring the law in line with European Union (EU) directives. The new law allows better control of companies operating in several countries shifting their profits abroad. Now they will be required to keep a special record of their transactions and assess all the potential costs, forms and times of payment including the way profit is calculated. If a company declines to present documentation, and tax officials discover it is a means to move profits abroad in order to pay lower taxes, then the Treasury itself will assess the tax payable and impose a 50% rate. (Gazeta Wyborcza, June10-11, page 36) P.S.