Tax scheme reporting (MDR) | Services for businesses

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.

Promoter

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.

Supporter

An entity or individual who undertakes to provide assistance in development, introduction, organization, provision for implementation or supervision of implementation of the arrangement.

Beneficiary

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:

• that are promoters, employ promoters or actually pay them remuneration,
• whose revenues or costs, within the meaning of the accounting regulations, exceeded the equivalent of PLN 8 million in the year preceding the financial year.

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).