As of 1 January 2019, as a result of the entry into force of the Act of 23 October 2018 amending the Personal Income Tax Act, the Corporate Income Tax Act, the Tax Ordinance Act and certain other acts, Chapter 11a Information on Tax Schemes was added to the Tax Ordinance (hereinafter OP).
This chapter introduced the obligation to report tax patterns into the Polish legal system. In addition, pursuant to Art. 86l OP, entities that are promoters, employing promoters or actually paying their remuneration, whose revenues or costs exceeded the equivalent of PLN 8 million in the year preceding the financial year, were obliged to introduce and apply an internal procedure in the area of counteracting non-compliance with the obligation to provide information on tax patterns. Obligatory elements of the procedure were specified in art. 86l § 2 OP.
In order to properly fulfil the obligations concerning reporting of tax schemes, in the opinion of the Transfer Pricing Institute, it is necessary to consider introducing, apart from the internal procedure, an instruction to verify events/agreements as tax schemes (hereinafter referred to as the MDR Instruction). Such an instruction may, for example, constitute an annex to the procedure.
The purpose of the MDR Manual is to indicate to the employees of a given taxpayer the methodology of proceeding in selecting tax schemes and the rules of reporting them to the Head of the National Revenue Administration. In addition, the manual will identify persons responsible for reporting, including the MDR Coordinator.
An integral part of the MDR manual are its attachments, e.g. the initial verification protocol, MDR survey, MDR event log or MDR calendar. These annexes are a practical convenience in meeting the reporting obligations of the tax schedules.
Author: Paweł Rosiński – Tax Advisor