A draft law, proposed in late July 2019, concerns settlement of disputes regarding double taxation and with respect to advance pricing agreements and would introduce a new mechanism for cooperation between taxpayers and the national tax administration.
The proposed cooperation agreement process is intended to provide that taxpayers comply with provisions of the tax law—under conditions of transparency, mutual trust, and understanding between taxpayers and the tax authority. The cooperation agreement program is expected to be effective 1 July 2020.
A cooperation agreement would be concluded at the taxpayer's request, and would apply for an indefinite period but could be terminated at any time on request by the taxpayer.
The cooperation agreement program is intended to provide certainty in application of the tax law. For instance, a tax agreement could be concluded to resolve certain disputes including those concerning:
In the case of submitting a return (or corrective return resulting from a tax audit), a taxpayer operating under a cooperation agreement would be able to apply a preferential interest rate for tax arrears or could be exempt from application of interest (depending on the type of tax audit performed). Other benefits include a prohibition of the launch of criminal proceedings for a covered tax period; reduced fees with respect to APAs; and the ability for the taxpayer to remit monthly estimated tax payments in a simplified form. Also, application fees with respect to GAAR would be 50% lower compared to the fees that taxpayers not a party to a cooperation agreement would have to pay.
Taxpayer compliance with obligations arising from the cooperation agreement would be recognized as “good faith” when there is a levy of an additional tax liability.
Cooperation agreements will not apply with respect to a requirement to report “tax schemes” (other than cross-border arrangements).
Read an August 2019 report [PDF 231 KB] prepared by the KPMG member firm in Poland
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