Month: February 2022

The Tax Information System and the tax ruling search engine were replaced by Eureka. The following items have been uploaded to the system: individual and general tax rulings, binding excise duty and rate information, tax explanations and information brochures. How does it work?
A commentary by Jacek Olczyk from the income tax team who, together with other tax experts, presents advantages and disadvantages of the Eureka system.

We invite you to read the article published on the Prawo.pl portal: https://www.prawo.pl/podatki/eureka-wyszukiwarka-interpretacji-z-zastrzezeniami,513691.html 

The Ministry of Finance reminds that the possibility of creating VAT groups is a significant simplification of settlements between related entities. It turns out, however, that it will not be so easy to use the new possibilities. All because of defective regulations. 

– The disadvantages result mainly from poorly created regulations or even missing regulations. A lot of basic issues have not been regulated, which will raise doubts and, consequently, risks, points out Zdzisław Modzelewski, VAT expert.

The whole commentary by our expert can be found in the article on Prawo.pl: https://www.prawo.pl/podatki/grupy-vat-bedzie-mozna-tworzyc-juz-od-1-lipca-2022-roku,513609.html 

Agreements concluded by a capital company with members of its governing bodies are subject to control. They must be approved by shareholders in a limited liability company. or stockholders in a joint stock company. Does this also apply to agreements with family members of persons who sit in corporate bodies?

Marcin Borkowski, Ph.D, answers this question in today's edition of "Dziennik Gazeta Prawna”.

According to the jurisprudence, also of the Supreme Court, granting a power of attorney is an expression of special trust, which means that it may be revoked at any time, and not only subject to automatic expiry upon the death of the principal or the attorney himself/herself. No special form is required to revoke the power of attorney, a declaration of intent regarding the revokation is sufficient. This is confirmed by Tomasz Krzywański and Olga Sulewska, GWW experts asked about this issue in the article published on Prawo.pl.

The article can be found at: https://www.prawo.pl/prawnicy-sady/pelnomocnictwo-nieodwolalne,36820.html

We are happy to announce that the 13th Annual Tax Conference will take place in the beautiful city of Cascais, next to the capital city Lisbon, Portugal, between 10 and 12 March 2022. One of the speakers will be Tomasz Krzywański, attorney-at-law and partner of GWW Tax, who will give a lecture entitled Taxing our darlings – Philanthropy, artworks, cars.

More info: https://www.aija.org/en/event-detail/639.

To unambiguosly conclude whether taxation has been avoided, it is necessary to check first whether a tax advantage has arisen. Although checking this is not simple and obvious, authorities such as the Head of the National Revenue Administration (KAS) or the Council for Counteracting Tax Avoidance are ready to believe that any situation that, for example, results in non-emergence of a tax liability or reduction of its amount, might potentially be tax avoidance. Andrzej Ladziński, GWW Tax partner, writes about why this approach is wrong, why it is in particular contrary to the very nature of the general anti-avoidance clause (GAAR) in an article published in the February "Przegląd Podatkowy".

We publish an excerpt from the article and invite you to read the whole "Przegląd…".

We have made a summary of the year and selected projects that we would like to share with you here. What are these projects like? Interesting, complex, demanding, but most of all such that enabled you, our clients, feel great satisfaction.

We have included this list at the link below: https://newsletter.gww.pl/alert/Nasze-sukcesy-2021-GWW.pdf

On 16 February 2022, the Supreme Administrative Court (NSA) issued a precedent judgment regarding the principles of determining the tax deductible cost in the event of sale of assets contributed in kind (reference number II FSK 1427/19). The case brought down to answering the question on to what amount a company was entitled to recognize the tax deductible cost in relation to the sale of an asset that was acquired as an in-kind contribution made after 1 January 2017, if the value of the subject of the contribution only partially increased the share capital, while in the remaining amount was allocated to the reserve capital (agio).

In the opinion of the Director of the National Tax Information and the Voivodship Administrative Court, the nominal value of company's shares issued in return for the contribution is the tax deductible cost in such circumstances. The Supreme Administrative Court completely rejected this viewpoint in the above-mentioned judgment. Changes in the principles of taxation of in-kind contributions, effective from 1 January  2017 (departure from determining the revenue of the contributing entity, from the nominal value of shares acquired to replace it with the market value of the contribution) also have an implication on the cost side of the company that receives the contribution. If the contributing entity is obliged to recognize the revenue at the market value of the object of contribution, then the company that receives the contribution is entitled to recognize the tax deductible cost in the same amount, less  depreciation write-offs, if applicable.

From the side of GWW, the case was handled by Kamil Szczęsny, Jacek Olczyk and Mariusz Tkaczyk, GWW partner and supervisor of the tax planning and income tax practices.

The time is coming to implement EU directives related to labor law and along with them – major changes in issues related to holiday leaves, terms of employment and dismissal, organization of work, training and protection against unfavorable treatment of employees. The planned changes are discussed by Joanna Łukaszczuk, Ph.D., who analyzes assumptions used to prepare the draft Act aimed at the implementation of the directives into Polish law.

The whole article is available on the Lexplorers portal at: http://lexplorers.pl/zalozenia-zmian-kodeksu-pracy-dyrektywy/.

Limited liability companies they are usually represented by members of their management boards. Another option is to appoint proxies, i.e. special representatives, who will act on behalf of the company. Can management board members and proxies make decisions independently of each other?

Marcin Borkowski, Ph.D., answers this question in today's issue of Dziennik Gazeta Prawna.