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Taxes. Tax interpretations. MF project. Małgorzata Samborska comments

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Tax interpretations issued before January 1, 2019 will expire on January 1, 2024. On the other hand, interpretations issued in 2019-2023 will expire 5 years after their issuance, according to the draft amendment to the Tax Ordinance. Fees for issuing an individual interpretation will also be increased.

Ministry of Finance informed about the commencement of pre-consultation of the draft amendment to the Tax Ordinance. Among the changes proposed in the draft, there are provisions under which individual interpretations and amendments to interpretations issued before 1 January 2019 become invalid as of 1 January 2024.

In turn, individual interpretations and amendments to interpretations issued after December 31, 2018 and before January 1, 2024 are to expire 5 years from the date of their issue. At the same time, the Ministry of Finance in the draft proposes that all individual interpretations should be valid only for 5 years from the moment of their issuance.

The draft law also gives the boss the opportunity CASH and the Director of the National Revenue Administration of the statement of expiry of the individual interpretation, if it is inconsistent with the general interpretation or tax explanations issued in the same legal status.

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Tax interpretation fees

The amount of the fee for issuing an individual interpretation is also to change. For individuals who do not run a businessshould be no more than 1%. the minimum wage for work (from 2024 the national minimum is to be PLN 4,242). In turn, in other cases (companies) it is to be no more than 100 percent. minimum wage. At the same time, as indicated by the ministry in the justification, the rates will ultimately be specified in the regulation and will be lower than the maximum thresholds – they are to range from PLN 40 to PLN 2.8 thousand. PLN, and the amount will depend on the size of the company’s revenues (people conducting business activity will pay the least).

Currently, an application to the National Tax Information for an individual interpretation is subject to a fee of PLN 40, which must be paid within 7 days from the date of submission of the application.

The draft amendment to the Tax Ordinance is also intended to create the possibility of securing tax liabilities of a VAT group and a tax capital group on the assets of a VAT group member and a company forming a tax capital group, respectively. The new regulations are to increase to 5,000. PLN (from PLN 1,000 currently) the amount of tax that third parties can pay for the taxpayer (in terms of family members or the current subject of a compulsory mortgage or tax lien).

It will also be possible to remit the tax before its payment date, and thus before the tax arrears arise. The justification indicated that this solution was created with the aim of e.g. on local government taxes and will allow the taxpayer to apply for relief before the payment deadline expires.

Simplified tax procedure

The draft Tax Ordinance also introduces simplified tax proceedings, in which some formal elements of the process will be excluded at the request of the party, which is supposed to shorten the entire process. Such proceedings will be available to those taxpayers for whom the amount of the tax liability to be determined or the expected change in the tax liability does not exceed PLN 5,000. zloty.

The draft also includes provisions under which the powers of the head of the tax office to perform tax audits are to be abolished. At the same time, it is proposed to strengthen and streamline the verification activities.

Among other proposed changes is the introduction of cascading tax liability for members of the management board of a capital company which is a general partner limited partnership or a limited joint-stock partnership for the arrears of that limited or joint-stock limited partnership. In addition, the tax administration will be able to assess the tax liability of a capital company deleted from the register during tax proceedings in a decision on the tax liability of management board members for arrears of these companies.

The ministry announced that comments on the draft act can be submitted until August 31, 2023. The draft act is to enter into force on July 1, 2024, although some provisions are to enter into force on a different date, also from January 1, 2024.

“Sounds like a bad joke”

Małgorzata Samborska, a tax advisor at Grant Thornton, previously criticized the proposal for tax interpretations in social media. “Create poor regulations and charge a fee of 100% of the minimum wage for their official interpretation. Sounds like a bad joke? And this is the Ministry of Finance’s idea for changes in the Tax Ordinance. In addition, the interpretations will be valid for 5 years, even though the regulations will not change” she wrote on Twitter.

– This is outrageous, because the worse the regulations are, the more requests for interpretations will be made and the higher the income will be – she explained in an interview with “Dziennik Gazeta Prawna”. The expert reminded that taxpayers apply for an interpretation because the regulations are unclear and they want to protect themselves against the risk of incorrect tax settlement.

In her opinion, the Ministry of Finance should strive to ensure that fewer and fewer taxpayers have to apply for an interpretation, and not to establish an additional source of budgetary revenue.

As we read in the newspaper, in Samborska’s opinion, the change will also mean the inequality of taxpayers before the law. – The person who can afford an individual interpretation will be protected. A taxpayer in a worse financial situation will not apply for it, because he will not be able to afford it, the expert points out

PAP, TVN24 Biznes, “Dziennik Gazeta Prawna”

Main photo source: Shutterstock

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