Tax audit – new rules for foreign entities

The Tax Ordinance will be supplemented with provisions that will make it easier to perform tax audit to foreign entities established in Poland – according to the draft amendment to the Tax Ordinance.

According to the Ministry of Finance, currently regulations often do not allow for the efficient initiation of audit process to taxpayers who are not Polish residents or are not having fixed establishments in Poland.

The current legal situation regarding tax audit shows that the audited is the taxpayer. In the case of a foreign company the taxpayer will be natural or legal person being not resident or established in Poland. “This results in practice with many problems associated with the initiation of control caused mainly by regulations of delivering notices and representation “- explains the Ministry of Finance.

Trouble concern cases where the facility does not have a legal form, and consequently – its representation on the territory of Poland. As a result, the tax inspection authorities have problems with checking the taxation of their business.

 

The Ministry of Finance is planning to enter an additional provision that allows (in a situation where audit concerns to fixed establishment of a foreign entity) showing the authorization to carry out tax audits and identity cards of the person who directs, supervises or actually represents the activities carried out on the territory of Poland. It will not be necessary to present these documents to the taxpayer.

Anticipated changes of a draft amendment to the Tax Ordinance was adopted by the Council of Ministers in March 2014

Regulations concerning the inspection of establishments foreign entities come into force 3 months after promulgation in the Official Journal.