Tax limitation periods will effectively disappear

The Ministry of Finance has announced draft amendments to the Tax Ordinance and the Fiscal Penal Code, which may radically change the existing rules on the limitation of tax liabilities. On the one hand, there are plans to abandon the suspension of the limitation period as a result of the initiation of criminal tax proceedings. On the other hand, however, it is proposed to abolish the provision prohibiting the initiation of proceedings after the expiry of the limitation period.

This change will enable tax authorities and prosecutors to conduct proceedings and seek payment of the so-called ‘equivalent of tax loss’ even many years after the expiry of the liability – this time through criminal courts.

“This is a very ill-considered concept, as judges adjudicating in criminal cases are not prepared to hear tax cases, which are often extremely complex and difficult. Defendants in such cases could face not only prison sentences, but also fines and additional tax payments, which would be called ‘equivalent to tax losses.’ In short, the state would collect taxes not through classic fiscal proceedings, but indirectly, through criminal courts,” comments Andrzej Ladziński, partner at GWW and chairman of the KRDP.

Find out what risks the draft entails and what entrepreneurs and managers can do to protect themselves from the consequences.

Link to the article with full commentary by Andrzej Ladziński, partner at GWW and chairman of the National Council of Tax Advisers: https://www.pb.pl/przedawnienie-podatku-w-praktyce-zniknie-przedsiebiorcy-nie-beda-spac-spokojnie-1246373