tax

Possible growth, but also more problems: Split payment in factoring

Factoring is growing rapidly in Poland. According to the Polish Factors Association, the value of receivables that are the subject of factoring is growing year on year by an average of 18%. Introduction of split payment may strike at the financial liquidity of firms seeking financing, but it may also drive growth in the factoring industry. But every rose has thorns. Split payment complicates factoring transactions and introduces new risks for factors.

Am I entitled to an appeal in a tax case?

The principle of a two-instance system is a fundamental principle in public authority proceedings. At times this principle is severely limited, and at times merely fictitious.

Who is intended to benefit from 50% tax costs? Certainly not taxpayers

The right to claim higher tax costs at 50% has recently been one of the most problematic issues in the relationship between tax authorities and taxpayers. At the beginning of the year this limit was raised twice, but the list of persons entitled to claim such costs was narrowed. Moreover, the tax authorities are consistently doing everything they can to stop taxpayers from taking advantage of this rate. So who is the 50% write-off intended for, and what are the criteria for eligibility?

From 2018 income of management board members to be taxed at 18% and 32%

Under a proposed amendment to the Personal Income Tax Act, from 1 January 2018 the compensation of management board members will be taxed at regular rates (18%/32%), whether paid in cash or bonuses in the form of derivatives of financial instruments or other property rights.

State Treasury’s liability in damages for defective tax decisions

The defectiveness (unlawfulness) of a tax decision isn’t enough. Injury must also be proved, and an ordinary causal link between issuance of the decision and the injury.

Liability for representations and warranties concerning the condition of the company in a corporate sale

Making false representations about the state of tax liabilities of a company being sold may make it necessary to cover the buyer’s losses, even years after the transaction.