Safety Mechanism - TLA Kancelaria

TLA Kancelaria > Specializations > Safety Mechanism

For some time now, we have observed a legislative trend in which what were once typical control and supervisory actions by the state administration over business activities are becoming mandatory elements of the ongoing operations of these businesses.

Of course, businesses today already follow established procedures in specific “sensitive” cases to avoid “mistakes.” Unfortunately, these procedures are often not formalized in a written form accessible to all employees, but instead, they exist only in the experience and knowledge of select members of the organization.

In the event of irregularities, demonstrating due diligence—which may limit liability—can be crucial. It may be essential to prove (most easily with written evidence) that:

an appropriate system of conduct rules existed within the organization, and responsibilities and functions were assigned to the appropriate members of the organization,
the individuals responsible for a given action were familiar with the security system’s rules and followed its recommendations.

Compliance

CIT, PIT, and VAT in all their forms are practically a language of their own. Not knowing this language can lead to serious misunderstandings. If you’re worried about getting tangled up, consider using a translator’s help.

We know the tax alphabet by heart. We help domestic entrepreneurs correctly settle VAT and CIT, ensuring their company’s tax security. For foreign entities, we offer comprehensive services in VAT calculation, starting with VAT registration and acting as a tax representative, through preparing complete VAT returns, to representing clients in the VAT refund process. If the Polish language is difficult for foreigners, imagine how challenging the taxes must be. If needed, we also assist with control activities and legal proceedings.

CIT Compliance

Calculation or verification of CIT calculations, including the preparation of the annual tax return.
Comprehensive CIT reviews
Development or verification of procedures related to CIT calculation

VAT Compliance

VAT registration
Analysis of the fixed establishment for business activity
Tax representation
Handling VAT settlements, including the submission of tax returns and SAF-T files.
Support with VAT refunds

Tax Strategy

Tax Settlements for the Largest Companies – Available to All

The obligation to publicize a tax strategy aims to increase the transparency of tax settlements for the largest taxpayers. Having a tax strategy that includes a description of the processes and procedures used by the taxpayer to manage the fulfillment of obligations arising from tax law, ensuring their proper execution, aligns with the legislative trend where it is not the authorities that sporadically check the correctness of a taxpayer’s activities, but rather a continuous process of “self-monitoring” is carried out.

Tax Strategy - Today for the Largest, Tomorrow for Everyone?

Who is required to prepare and publicly disclose information about their implemented tax strategy?

The following entities are required to prepare and publicly disclose (on their website) information about their implemented tax strategy:

CIT taxpayers whose revenue in the tax year exceeded the equivalent of 50 million euros,
tax capital groups.

Voluntary Implementation of a Tax Strategy - For Whom?

Voluntary implementation of a Tax Strategy is intended for all entities that prioritize the proper functioning of comprehensive procedures ensuring accurate tax settlements.

How can we assist you?

We implement due diligence procedures in all tax areas, primarily including:- VAT settlements (including domestic transactions, intra-EU transactions, and customs procedures);
- Transfer pricing obligations;
- Mandatory disclosure rules (MDR);
- Withholding tax (WHT) obligations;
- Monitoring of cost limits in CIT (15c CIT);
- Operations outside the Republic of Poland;
- Application of tax reliefs, exemptions, and preferences.
We assist in describing the tax strategy, including the adopted principles and procedures within the organization.
We prepare information on the implemented tax strategy.

Cooperative Compliance Program

Cooperative Compliance Program – Engage with Tax Authorities as Partners

The Cooperative Compliance Program is a new model for the relationship between taxpayers and the Tax Administration. Under this program, taxpayers are required to meet certain internal tax oversight requirements, but they gain a special status that allows them to benefit from various advantages in their dealings with the Tax Administration. Currently, the program is available only to the largest entities and participation is limited. However, it is expected that this form of relationship with tax authorities will become more widespread over time.

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Currently Available Only for the Largest Entities

In theory, the program applies to CIT taxpayers whose revenue in the previous fiscal year exceeded EUR 50 Million. In practice, the Head of the National Revenue Administration may limit the number of participants to 20 in the first three years of the program’s operation.

How can we assist you?

We support taxpayers in establishing a framework for internal tax oversight by:– mapping the tax area (identifying processes related to taxes),
– identifying the approach to tax matters, including the division of tasks and responsibilities within the organization,
– assessing the adequacy, completeness, and due diligence of the adopted procedures,
– modifying and supplementing the adopted procedures,
– effectively communicating the adopted solutions to the staff,
– verifying the implementation of the adopted procedures.
We conduct an independent audit of the tax function, which we recommend completing before undergoing the preliminary audit conducted by the Head of the National Revenue Administration.