Poland has prepared guidance on some questions arising from the issue of transfer pricing regulations last year. The guidance is generally based on OECD principles. Under the guidance the expression “business restructuring” is defined as the transfer of significant economic functions, risks and assets from one related party to another. The guidance indicates that not every such transaction amounts to a restructuring, but the tax authorities should consider whether there has been a transfer of profit potential. Where profit potential has been shifted from one party to another the terms of the restructuring must be in line with the arm’s length principle.