The individual interpretation can be the entrepreneur's protective shield. It is worth to commission preparation of the application to a professional person.

 

The majority of entrepreneurs is aware of the complexity of the Polish tax law deriving from its constant changes. The complexity and frequent imprecision of the law makes it possible for the tax authorities to interpret the regulations in an unfavourable way for the tax payer. Therefore, entrepreneurs while making vital economic decisions need to make sure that realisation of their plans will be safe. Not always however, do they know how to do it. There is though, a tool which provides so needed feeling of security.

   

The application for a tax interpretation can be filed by anyone concerned: tax payer, payer or other entity, including those whose place of residence or seat is outside the territory of Poland. Such entities may file an application for an individual interpretation, should they have doubts about the existing actual state of affairs or a future event that may cause particular consequences in the tax law. Obviously no interpretation can be prepared for a case that is final and non-appealable or is a subject of proceedings.

 

The individual interpretations of the tax law are issued on behalf of the Minister of Finance by the directors of 5 Tax Chambers in: Bydgoszcz, Katowice, Łódź, Poznań and Warszawa (Warsaw). For the entrepreneurs from Zachodniopomorskie province the body responsible for issuing interpretation on value added tax (VAT tax), corporate income tax (CIT) and personal income tax is the director of the Tax Chamber in Bydgoszcz. As far as other taxes are concerned the body responsible is the Tax Chamber in Katowice (it does not concern local taxes and charges e.g. the immovable property tax, the agricultural tax and the forest tax). Entities having their Registered Office abroad should file their applications for the tax interpretation to the Director of the Tax Chamber in Warsaw.

 

A correct application should include:

 

All that must be included in the application for an interpretation and filed on a specially prepared form ORD-IN, ORD-IN/A.

 

The fee is PLN 40 for each actual state of affairs or a future event being the subject of the application. One must admit that the cost is reasonable.

 

In compliance with the Tax ordinance the interpretation should be issued without unnecessary delay, no later than within the period of 3 months from the day of receipt.

 

Interestingly, should the body responsible for issuance of the individual interpretation fail to call the applicant to remove a defect or fail to take some actions within 3 months, the tax payer's interpretation described in its application is deemed to be accurate.

 

The basic advantage of receiving an individual interpretation, especially in case of a planned undertaking, is the full risk elimination should the Inland Revenue question the entrepreneur's action while fiscal control (obviously when the actions are in line with the individual interpretation the entity had received). The increase in the amount of tax is no longer a matter of an entrepreneur's concern nor, importantly, is the risk of getting a high fine under the Fiscal Offences Act should the tax authority be of the opinion that the enterprise had made an attempt to deplete the national budget intentionally.

 

Undoubtedly, such a shield is worth having. It works!  

 

A drawback of such activity is the length of the procedure, which usually takes at least 3 months. The expression "at least" was used intentionally. In case of errors in the application (e.g. imprecise description of "the actual state of affairs" or "the future event") the Director of the Tax Chamber calls for removing the defect which prolongs issuance of the individual interpretation (the period given for delivering a call, sending an answer and delivering it is not included in the statutory period of 30 days within which the interpretation must be issued). Making a mistake is almost impossible to evade if an application is prepared by a person who has never done it before..... In such a case, especially if a considerable amount of taxes, interests or fines is at stake, it is undoubtedly beneficial to have the application prepared by a specialist - experienced and certified tax adviser.

 

More information on individual interpretation: 

Sebastian Goschorski

+48 536 920 208

kontakt_biznes@poczta.debet.pl

Firma Audytorsko-Księgowa z Grupy Poncyljusz i Radź