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What is Tax Litigation?
RSM Poland’s Tax Litigation Team are experts in Polish tax law. Our advisors, who have great knowledge of the tax procedures, represent taxpayers in communication with revenue officials, guaranteeing safe relations between our clients and tax authorities.
As professional agents, we represent our clients in contact with tax authorities in any tax affairs, i.e.:
- verification activities,
- tax audits,
- customs and fiscal controls,
- tax proceedings,
- appeals before second instance tax authorities,
- proceedings before voivodeship administrative courts and the Supreme Administrative Court.
We can also represent parties in proceedings of specific character, i.e. in cases involving determining the liability of third parties (including management board members) for tax obligations of taxpayers (e.g. companies).
We have considerable experience in cooperation with clients from various industries and we understand that the everyday economic reality is often different from that perceived by tax authorities. To avoid disorganisation of your operations by repeated inquiries of tax authorities, it is advisable to take advantage of the services provided by tax law experts who will make sure that the time of the settlement of tax affairs is not unnecessarily extended and that no obstacles to the ordinary course of business are created because of this.
How can RSM Poland’s tax advisors support your company during tax audits and proceedings?
We represent taxpayers in all verifications of the correctness of their tax filings, regardless of the type of tax and the location of the tax office.
In recent years, we have noticed that tax authorities have expressed higher interest in checking taxpayers' settlement of tax affairs – i.e. an increase in the number of review of tax returns: verification activities as well as tax audits and customs and fiscal controls. Our experienced tax law experts make sure that RSM clients suffer no harm during these proceedings and assume the responsibility for communication with tax officials, so that taxpayers experience minimal effects of the verifications.
We pay great attention to procedural issues. Our primary goal is to make certain that the activities of tax authorities are carried out in compliance with and exclusively within the limits of tax law as well as to guarantee that the rights of our clients as verified taxpayers are observed. We consider the safety of our clients and their businesses as number one priority, and we are not afraid to take an assertive stance against any activities of tax authorities which are in breach of the law.
Frequently asked questions: what is worth knowing about tax audits and proceedings in Poland?
How long can a tax audit take?
Before initiating any checks, the tax authorities are obliged to serve the taxpayer with a notice containing the start date and expected end date of the audit. The aggregate duration of all tax audits of one entity may not exceed:
- for microenterprises – 12 business days;
- for small enterprises – 18 business days;
- for medium enterprises – 24 business days;
- for other enterprises – 48 business days,
in one calendar year.
There are numerous, but quite clearly specified exceptions to the above rule.
How far behind can the tax authorities go in checking taxes?
As the statutes of limitation for tax liabilites expire after 5 years (from the end of the calendar year in which the time limit for the payment of the tax elapsed), the tax authorities, in most cases, should not go further back in audit than that time.
What is also important is that the exact scope of the audit (with specified years for which the audit is to be carried out) must be communicated to the taxpayer in the audit notice which must be served not later than 7 days before initiating relevant actions.
Who is in charge of the tax audit?
The tax audit is typically carried out by the head of the tax office assigned to the region in which the taxpayer's place of residence or registered office is located. Thus, the officials of the tax office to which taxes are regularly paid are responsible for the audit activities.
There are certain exceptions to this rule: depending on the scope of the audit, the checks can be also carried out by heads of customs and tax offices, village, town or city mayors, district or province governors, or the Head of the National Revenue Administration.
What is the difference between a tax audit and a customs and tax audit?
A customs and tax audit is much more inconvenient for taxpayers than a tax audit. In comparing these two procedures, the following key differences can be outlined:
- a customs and tax audit, as opposed to a tax audit, may be initiated without prior notice;
- a customs and tax audit may be carried out by an authority from a distant region (for instance, a company from Poznań may be audited by the head of the customs and tax office in Rzeszów, which is roughly 650 km away);
- customs and tax audits are not limited by a maximum number of days in one year during which one taxpayer can be audited;
- in the course of a customs and tax audit, the controllers may request such files, documents and records which, although being to a certain extent connected with the subject-matter of the audit, concern a different period than that indicated in the audit authorisation;
- within the framework of a customs and tax audit, in addition to checking documents, the controllers can interview the auditee and witnesses;
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unlike a tax audit, taxpayers have no possibility to raise objections to the findings of a customs and tax audit.
When is a customs and tax audit initiated?
A customs and tax audit is initiated without prior notice. The activities officially begin on the day when the audited taxpayer receives an audit authorisation.
How long can a customs and tax audit take?
A customs and tax audit should be completed not later than within 3 months from the day on which the auditee receives the audit authorisation. However, the regulations allow officials to extend this period; this means that customs and tax audits may carry on for months or even years.
A customs and tax audit is officially concluded on the day when the taxpayer receives an audit findings report.
How long do tax proceedings take?
Tax proceedings should be completed without undue delay, but not later than within a month from their start. In complicated cases, their duration can extend to 2 months. If the time limit is exceeded, the tax authorities are each time obliged to notify the taxpayer of the same, stating the reasons for the non-compliance with the time limit and setting a new end date of the proceedings. In practice, tax proceedings last for several months, and in more complicated cases, even more than a year.
Before issuing a decision which resolves the case or concludes the proceedings in a different manner, the authority is obliged to provide the taxpayer with a 7-day period to take a stance on the accumulated evidence on the case. Such action is a clear signal that the proceedings are coming to an end.
How are tax proceedings concluded?
Tax proceedings are completed when the authority in charge issues a decision containing:
- designation of the tax authority;
- date of issue;
- designation of the party;
- reference to the legal basis;
- outcome of the case;
- reasons in fact and in law;
- instruction on the appellate procedure;
- signature of the authorised person, with his or her full name and official position.
A decision issued in the first instance may be appealed from by the taxpayer within 14 days from the day on which the decision was delivered to the taxpayer.
