TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

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SLIM VAT 2 or further changes in VAT passed

Most of the changes envisaged in the second part of the VAT simplification package, so called SLIM VAT ( S- simple, L-local, M-modern) will come into force on 1st October this year. The President has already signed the bill. In this blog post I analyze the 6 most important changes that will soon come into effect, regarding chain transactions, intra-community acquisitions of goods and import of services, bad debt relief, input tax deduction, voluntary real estate sales tax, extension of time to correct imports in simplified procedure and split payment mechanism.

Changes to the Labour Code will enable employers to conduct random sobriety checks – analysis of the draft

Among the draft amendments to the Labour Code, which in recent weeks have been submitted to the Government Legislative Centre, there is also a draft act amending the Labour Code act and the act on Upbringing in Sobriety and Counteracting Alcoholism. The impulse to introduce changes in the area of alcohol testing of employees is the current legal regulation, which de facto makes it impossible to perform such tests, as well as the demands of employers themselves, pointing to the annual increase in the number of accidents at work caused by the intoxication of employees.

You can still recover interest paid for late declaration of IC-acquisition

On 18 March 2021, the Court of Justice of the European Union (CJEU) handed down a favourable judgment for Polish taxpayers (C-895/19) regarding VAT on intra-Community acquisitions of goods (IC-a). I have already informed about the ruling in the blog post „Favourable CJEU ruling on turnover tax on intra-Community acquisition of goods” in April this year, in which I analysed in detail the essence of the dispute between the taxpayer and the director of the National Tax Chamber (KIS). After the publication of the justification of the CJEU judgment in May 2021, taxpayers began to file applications for acknowledgment of overpayment an masse in order to be on time before 9 June 2021, as on that day the deadline for filing the application together with the overpayment interest due expired. It is worth remembering that the expiry of this deadline, however, does not close the way to recover the interest paid on the untimely filed IC-a.

Amendments to the Labour Code regarding home office – a response to the current needs of employers

After lengthy consultations on the introduction of changes to the Labour Code, a draft act amending the Act – Labour Code, the Act on Vocational and Social Rehabilitation and Employment of Persons with Disabilities and the Act on Employment Promotion and Labour Market Institutions was submitted to the Government Legislative Centre. Although the draft was submitted to the Government Legislative Centre in May, and its content was significantly modified in July, the draft is currently at the opinion stage. The bill is primarily a response to the recently widespread form of home office work and the need for increased health protection for workers in relation to COVID-19.

Can the CEO’s remuneration be treated as tax deductible expense?

The Director of the National Tax Information (KIS), in an individual interpretation issued on 26 June 2021, confirmed the position of a taxpayer regarding the possibility to treat as tax deductible expense the expenses incurred for remuneration of CEO of a company and, at the same time, its shareholder, under a contract for work concluded with him.

Tax authorities may not initiate penal fiscal proceedings for appearance’s sake

Tax authorities are not entitled to make apparent use of the regulation which allows for suspension of the limitation period or for its non-initiation in the case of commencement of penal fiscal proceedings (art. 70 § 6 item 1 of the Tax Ordinance Act). Additionally, a taxpayer must be notified of this fact and the suspicion of a crime or offence must result from his failure to fulfil a tax liability. Unfortunately, in practice, there is a frequent abuse of the law by the tax authorities, consisting in the initiation of penal fiscal proceedings in the case of a tax offence only for the appearance’s sake, to extend the time for completion of tax proceedings.

What should taxpayers bear in mind at the stage of initiation of a tax inspection by the tax authority?

Situations related to a tax inspection generally arouse fear and apprehension among taxpayers just after receiving a notice of the intended tax inspection. Indeed, a tax inspection is a procedure that goes far beyond the scope of verifying activities, whereby the tax authority, as a rule, verifies the timeliness and correctness of filed returns and paid taxes.

Limited partnerships have no choice – from 1 May 2021 they are CIT taxpayers

On the grounds of the amendment of the Corporate Income Tax Act on 30 November 2020, limited partnerships have been subject to CIT. The form of conducting business according to the rules, when the limited partner was usually a natural person with a significantly limited scope of personal liability and the general partner was a limited liability company (sp. z o. o. sp. k.), whose liability was limited to the amount of equity, has been forgotten.

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berlin@vonzanthier.com
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