The introduction of a clause to circumvent tax law, which is to prevent the avoidance of tax, predicts the government draft amendment of the Tax Code, which first reading in the Parliament is scheduled for Wednesday.
the government adopted a draft amendment to the tax Code proposed clause to circumvent the tax law in mid-March. The solution is not new. A similar proposed former finance minister Mateusz Szczurek, but the PO-PSL government led by Ewa Kopacz with this concept withdrew. Clause to circumvent the law also provide prepared by the Codification Committee of the General Tax Law (established yet in the previous term) assumptions for the new Tax Code.
The government of Law and Justice points out that the general clause against tax evasion or developed a line of judicial decisions is a standard in other economically developed countries. .
also recalls that the seriousness of the risks of tax avoidance noted the European Commission, and one of the recommended solutions it is the adoption by Member States of the general principle concerning the fight against tax fraud.
problems with tax collection rates – mainly CIT and VAT – we reproached the IMF in a report last year. “The performance in tax collection has deteriorated significantly during the crisis and has not improved” – diagnozował. According to the IMF poor performance results are contrary to the listed in other countries in Europe, where the level of tax collection in relation to GDP has returned to the levels recorded before the crisis of 2008. “The ongoing decline in CIT is significant and may indicate a potential increase in risk in fulfillment of tax obligations by taxpayers, “- declared the Fund.
What will change clause
According to the government introduce a ‘designates the limits of acceptable tax optimization”, and the change will positively affect on the competitiveness of the market and ensure equal treatment of taxpayers engaged in economic activities.
the clause is to prevent the avoidance of tax – to prevent them from making plastics and non-justification of economic activities through which would seek to bypass the rules and achieve tax benefits. Tax authorities will be able to recognize that the activity of the taxpayer, eg. The transaction was undertaken primarily or exclusively for the tax reduction. In this case, the tax will be determined in the proper height.
The draft stipulates that the clause would apply only if the benefit received by the taxpayer as a result challenged by the tax authorities artificial activities, in fiscal year exceeded the amount of 100 thousand. zł.
The Minister of Finance would seem so. reviews security to ensuring that certain actions taxpayers will not be assessed as tax avoidance. Established to be independent of the Ministry Council. Avoidance, Your reviewer contentious issues relating to tax evasion.
“The primary purpose of the clause is the proactive elimination of the use of tax avoidance schemes. Reduction of aggressive tax planning will increase the tax base in Poland . It is noticeable especially excessive, unjustified increase in cost of revenues, which in turn causes a decrease in the amount of taxable income “- the explanatory memorandum to the draft.
the change will come into force after 30 days from the date of publication.
the government has already rubbing their hands
Deputy finance Minister Wieslaw Jasinski said recently that a lot of promises to the clause to circumvent the law. While Deputy Finance Minister Leszek Skiba said earlier that the ministry depend on that to clause entered into force in the coming months. He recalled that similar solutions are in most EU countries. He pointed out that the purpose of the clause is to diagnose and identifying patterns of legal and tax applied only in order to avoid taxation, no relation to the real activities of a business. – This clause allows the taxation of these schemes so that the shortage of tax revenue as small as possible – he said Skiba.
MF indicated in the impact assessment that the costs deductible in CIT in 2013. Amounted to approx. 5, 8 billion zł. Assuming that the result of the application of the clause of the costs deductible only in the corporate income tax would be reduced by 0.12 – 0.5 per cent., The indirect consequences of the introduction of a clause for the budget in the first year of its use would be estimated at $ 1.3 – 5, 4 billion zł. In the following years – assuming that the cost would be reduced by the amount in the range of 0.25 percent. – 1 percent. – Indirect effects on the budget would be € 2.7 billion zł to 10.87 billion zł.
According to the report on implementation of the budget for last year, income tax authorities amounted to 283.5 billion zł, expenditures – 312.5 zł billion and the deficit – 29 billion zł. The impact of the VAT to 124.2 billion zł; excise tax – 61.5 billion zł; PIT – 43 billion zł, and CIT – 23.2 billion zł.
Expert dampens the enthusiasm of the government
The introduction of a clause against tax evasion will not bring the state budget additional billion zł. The problem lies not in a bad law, but the efficiency of tax collection – said vice-president of the National Council of Tax Consultants Dariusz M. Malinowski.
The introduction of a clause which is to counteract tax avoidance by companies, provides the government draft amendment of the Tax Code, which first reading is scheduled in the Parliament on Wednesday. The government adopted the project in mid-March. The solution is not new. A similar proposed former finance minister Mateusz Szczurek, but the government PO-PSL led by Ewa Kopacz with this concept withdrew.
Malinowski believes that because for so long failed to introduce in Poland clause to circumvent tax law it should now be to wait for the adoption of new regulations on European law, and then deploy them to the Polish law. – The European Commission is working on the draft of the new directive, which would introduce such a clause. I think it’s a matter of a few months – he stressed.
The expert, prepared by the government project does not cause the tax system in Poland will be sealed, and the budget will affect additional billions of dollars. – The problem is not in the law, because Polish law in this regard is reasonable, but the efficiency of the tax authorities. Here you have to look for new solutions – he stressed.
He added that in his opinion it is not only his position, but most of the environmental tax advisors. – I think that there is no miraculous legislation that just because they have been enacted, will result in a sudden increase in revenues to the state budget. Again, the current legal solutions in Poland are sufficient, but the problem is that the EU does not act customs borders, goods flow freely, and all kinds of international settlements take place on the basis of the declaration of taxpayers. At the moment there are no tools to prevent leakage of the gray zone – he said.
He reminded that according to some data fraud due to non-payment of VAT in all countries of the community dates back more than a year of 150 billion euros. – These are scary money. All these criminal organizations, because otherwise you can not call it work efficiently from the administration. That needs to change. In my opinion you need to quickly change the rules for charging VAT on intra-Community transactions. This would bring additional resources to the budget – he said.
He explained that the solution would be the introduction of the regulation, according to which when making transactions in the country in which the goods were produced, extracted would be the tax due to the EU directive, and in the country of destination commodity settled would be the difference between the rate in force in that country, a rate that results from the directive.
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