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Polish regulations stipulate challmarks determining potential application of a given tax scheme. Only hallmarks require the so-called main benefit test to be met. In case of other hallmarks, the informational obligation arises irrespective of the existence of a tax advantage.
Failure to comply with MDR regulations can result in severe sanctions. The fine for non-compliance with reporting obligations imposed on individuals may amount to up to PLN million.
A tax scheme is a broad concept and should not be equated with an economic event resulting in the achievement of a tax benefit referred to in the GAAR clause. The obligation to report the tax scheme may apply to situations in which the tax benefit is not to be obtained at all.
Standard transactions that exceed certain thresholds or have other defined characteristics, such as dividend payment to a shareholder or a transfer of assets or functions between related parties, may be subject to MDR reporting in Poland.
Any individual or entity that develops, offers, implements or makes available a tax scheme, in particular tax advisers, legal advisers, attorneys-at-law or employees of financial institutions advising clients.
An entity or individual who undertakes to provide assistance in development, introduction, organization, provision for implementation or supervision of implementation of the arrangement.
Any individual or entity to whom arrangement is provided or at whom an arrangement is implemented, or which is prepared for implementation of an arrangement or has performed an activity for the purpose of implementation of an arrangement.
In addition to reporting obligations, the MDR provisions also impose the obligation to have an internal procedure on counteracting failure to fulfill the obligation to provide information on tax schemes. The procedure is required to be implemented by entities:
Violation of the obligation to have an internal procedure is subject to an administrative sanction of up to PLN 2 million (and in certain cases even PLN 10 million).
reviews of transactions and events in terms of occurrence of tax schemes in a certain period,
support in preparation of internal MDR procedure,
support in reporting of tax schemes or fulfilling other informational obligations arising under MDR provisions,
MDR Assessment is a tool developed by PwC experts, containing up-to-date information on MDR and allowing for an initial assessment of transactions in terms of risk of occurrence of a tax scheme. Transaction evaluation is based on our experience and is based on limited information provided in responses.
you will make an initial assessment of the probability of an occurrence of a tax scheme,
you will become familiar with the latest news on MDR,
You will find all relevant regulations related to MDR in one place.