The new draft Tax Ordinance is already known
Not 344 like so far, but 728! This is the number of articles in the new Tax Ordinance, according to the draft that was recently published on webpages of Government Legislation Centre. As it was highlighted in the justification, the Act applicable since 1997 does not comply any more with the requirements set for such legal acts, which is why it should be changed.
The regulations included in the draft Act are to achieve the two basic objectives: (i) protection of the taxpayer’s rights in their relations with tax authorities and (ii) increasing effectiveness and efficiency of collecting taxes.
Among others, the following means are ensure achievement of the assumed objectives:
- Introducing a new possibility of the so-called consensual methods of handling tax issues – mediation, a contract or consultation procedure (control upon request) or cooperation contract,
- The tax authority’s possibility to restore the material date resulting from provisions of tax law if the obliged party is in delay – e.g. with submitting a tax return, a declaration on selecting the flat rate in PIT,
- The possibility of tax remission, without waiting for expiry of the payment period,
- The possibility to correct the tax return before termination of tax proceedings (in the period indicated by tax authority for presenting opinion on gathered evidence). Consequently, it is a return to the institution that existed in the Act on Fiscal Audit,
- Introducing simplified proceedings, concerning minor tax amounts (the authority shall be entitled to issue a decision within 14 days, without justification, if the actual status does not arouse any doubts or the tax amount does not exceed PLN 5000),
- Another novelty will be office information on significant amendments to provisions of the tax law,
- The possibility to pay the tax by entities other than the obliged party will be extended,
- Significant changes concerning the limitation period are assumed – introducing the term of limitation period of amount (3 or 5 years, counted from expiration of payment period or arising of tax obligation) as well as period of expiration of tax collection (after expiration of limitation period of amount there would be a 5-year limitation period of collection), as well as limitation of interrupting and suspending the course of limitation period,
- Amendments concerning individual interpretations are also planned – centralization of issuing them (also in terms of collecting local taxes) and more frequent issuance of general interpretations (Minister of Finances is to be authorized to direct legal questions to Supreme Administrative Court when as of issuing general interpretation there are serious doubts concerning incompatible judicial decisions of administrative courts).
The Ordinance is to become effective in 2020. However, it is advisable to follow the process of legislation works which may lead to significant changes in the presented draft. What is more, the practice will show, whether as a result of its implementation relations between tax payers and tax authorities will improve.
Do you have any questions to the author?
Tax Consultant, ATA TAX Sp. z o.o.