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.
We have successfully completed a tax case relating to the taxation of the distribution of 2014 profits to our client from a Slovak partnership. The success is twofold, because the decision on discontinuation of the proceedings was issued on the basis of substantive law.
In the final decision, the head of the customs and tax office stated that according to the legal status existing in 2014, provisions of the Polish-Slovak double taxation treaty clearly show that the payment of profit from a Slovak partnership is not subject to taxation in Poland.
At the same time, we would like to draw attention to one very important position of the tax authority. The authority found that with regard to income taxes, "tax authorities, as a rule, have the possibility to challenge tax consequences of activities considered to be an artificial structure constituting an abuse of law, [sic!] by referring to the case law of the Court of Justice of the European Union and applying the general principle of EU law prohibiting practices constituting an abuse of European Union law”.
In the end, these regulations of EU law were not applied in our case, but the position stated should be regarded as, at the very least, worrying. It allows tax authorities to use the law abuse structure as a kind of substitute for the general anti-avoidance clause, also to activities taking place before 2016.
The case was handled by Jacek Olczyk and Mariusz Tkaczyk, GWW partner and supervisor of the tax planning and income tax practices.
Have you ever wondered in what language should an employment contract that will bind your foreign-speaking employee be drawn up? Should you translate the employer's internal regulations into a foreign language? It seems like it is high time to think about it, because the number of foreign employees in Poland is constantly increasing.
Joanna Łukaszczuk, Ph.D., describes various aspects of how to decise which language should be chosen in legal and business relations with an employee.
Link to the article: http://lexplorers.pl/jezyk-umowy-o-prace/
The so-called monument tax relief, so far unnoticed among numerous changes in the Polish New Deal, has reached the main media coverage in recent days. Considering the possible scale of the deductions, it is a relief that is worth looking at when planning investments in the coming years.
Krzysztof Gajdziński from the GWW private client advisory team described the possibilities offered by the monument tax relief on our Lexplorers portal.
Link to the article: http://lexplorers.pl/ulga-na-zabytki-i-odliczenia-w-pit/
The company's undertaking includes all components used to conduct business activity. Therefore, the sale of the undertaking requires a special approval of the company's shareholders. What requirements should be met in such a case? The questions are answered by Marcin Borkowsk, Ph.D., attorney-at-law and of counsel at GWW.
