VAT non-compliance is currently a hot topic in the European Union. VAT Gap grows rapidly, and budget revenues from VAT remain unstable. Polish VAT gap was estimated and government bodies chose to take decisive steps to prevent its growth.
There are many actions that affect VAT compliance in Poland, but the most common method of defrauding public funds remains the so called “carousel fraud” or “the missing trader fraud”. In this type of scams it is important to remember that, unfortunately, such practice may also have negative consequences for businesses that are conducted with integrity.
Polish government is exacerbating the fight against the gray economy. Ministry of Finance and Ministry of Development has joined forces to prepare a new set of regulations aimed at further sealing a tax law in Poland. Ongoing legislation process is focused on requirements related to transport of sensitive goods such as fuel. Government Bodies want to introduce a new Act on registration and monitoring of road transport in Poland. The Act will specify a catalog of sensitive goods, which transport across the country will be controlled.
Under the new rules a monitoring system consisting of a Customs Service register of transported goods and dedicated mobile communications system will be introduced.
Montenegrin Parliament adopted in August 2016 amendments of the Corporate Income Tax Law which come into effect on 1 January 2017. The amendments introduced rules regarding tax deductibility of certain expenses, electronic filing of tax return, assessment and mechanism for taxation of capital gains realised by non-residents on sale of Montenegrin capital goods, revised penalties for non-complying with the provisions of this law, as well as broader definition of income realized by non-residents subject to withholding tax.
Economic operators can expect several changes to tax laws from 2017, including changes to the environmental protection product fee. These changes, however, will be introduced as a standalone amendment, rather than as part of the “omnibus” amending regulations. Accordingly, on 5 December 2016, Act CXXXIX of 2016 was published in Issue No. 191/2016 of Magyar Közlöny (the official gazette of the Hungarian State), which includes the amended provisions of Act LXXXV of 2011 on the Environmental Protection Product Fee (“Product Fee Act”) effective from 1 January 2017.
In July 2016 the SRS published a ruling on how income received by someone sitting on a company’s management board is taxed under section 8(2.9) of the Personal Income Tax (PIT) Act. This article explores the approach the SRS takes in analysing the taxpayer’s issue.
X Ltd has two officers: the chairman of the board and a board member who is also the company’s CEO. The chairman receives no remuneration for his work, but the board member is remunerated by three companies: X Ltd, U Ltd (X’s parent company), and C Ltd.
Companies that launch property development projects or pursue other lines of business in an area with no infrastructure (no roads, no streets, no lighting, no water main, etc) are often forced to build the necessary items of public infrastructure, because municipalities do not have enough funds. Later, to reduce the cost of managing that public infrastructure, the developer requests that the municipality should take ownership of those items and carry out their further management and maintenance. This article explores the tax implications of such activities.
The latest version of the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations, which came into force in autumn 2015, substantially widens the range of requirements for analysing risk as part of the functional analysis in a company’s transfer pricing documentation. This article takes a look at details.
Section D1.2.1 of the OECD guidelines states that the process for analysing risk in a controlled transaction should comprise the following six steps:
Identify economically significant risks with specificity;
Determine how specific, economically significant risks are contractually assumed by the associated enterprises under the terms of the transaction;
On 22nd July Sejm accepted a bill amending income tax laws. The amendment introduces new lower CIT rate at 15 % for so-called small taxpayers, as well as a number of important changes relating to catalogue of categories of non-resident income subject to taxation in Poland, exclusion of deferral of taxation of share exchange , where one of primary aims of this transaction is tax avoidance, rules of taxation of in-kind contribution of assets (other than going concern)and application of withholding tax exemption for interest and royalties depending on whether the recipient is beneficial owner thereof.
On 15 June 2016 the Act LXVI of 2016 amending certain tax laws and related legislation and Act CXXII of 2010 on the National Tax and Customs Authority was published in issue no. 87 of Magyar Közlöny (the Official Gazette of Hungary). The most important provisions of the amending act are summarized below. In addition to next year’s tax changes, the amending act contains several provisions that will come into effect later this year. We point out these provisions in this newsletter.
The agreement between the Czech Republic and the Principality of Monaco for the exchange of tax Information specifies the type of information that both countries are obliged to provide in the event of a request. The agreement also sets out the procedural requirements under which the exchange will take place.
At the issuing of the request, the information that is deemed relevant for determining, assessing and collecting taxes on corporate and personal income, property taxes, secure payment of these taxes or information for an investigation and prosecution of tax offenses may be provided.