The President of Poland has signed the bill amendments to the Tax Code including the General Anti-Abuse Rule (GAAR) requirements on 7 June 2016 and it is likely that GAAR will be introduced in July 2016.
GAAR provisions will provide some tax benefits:
- A tax liability that has not arisen, has been delayed or reduced, or a tax loss that has been incurred;
- A tax overpayment or tax refund has been increased
According to the changes throughout the lawmaking process, in the final version it is confirmed that GAAR provisions apply to the tax advantages obtained after the date of entry into force of this Act.
Evaluating the application of GAAR
- when the tax benefit or the sum of tax benefits an company has accomplished from the acts does not exceed PLN100k in a period of account and in the case of taxes which are not accounted for periodically but if the tax benefit from an act does not exceed PLN100k and if the application of other provisions of tax law permits counteracting tax avoidance the GAAR provisions will not be applicable;
- in addition, the new rules present for presumption that the method of activities was artificial, if the opinion is not issued within three months (except if the taxpayers requested the opinion). Taxpayers who want to maintain their tax settlements against GAAR will be able to apply to the Ministry of Finance for a formal authentication of non-applicability of GAAR in their explicit case and the fee for achieving such opinion would be PLN20k.
