On Friday, 26 October, the Senate of the Republic of Poland passed a resolution to adopt without amendments the Act of 23 October 2018 amending the Act on Personal Income Tax, the Act on Corporate Income Tax and some other acts. The commented amendment not only comprehensively changes the transfer pricing regulations in the income tax acts, but also extends the scope of acts subject to penalisation under the Fiscal Penal Code Act (Journal of Laws of 2018, item 1958).

In the context of documentation obligations related to transfer prices, it should be pointed out first of all that from 1 January 2019, in accordance with the added Article 56c of the CCS, it will be punishable not to submit a declaration on the preparation of transfer pricing documentation. It will also be sanctioned if this declaration is not submitted on time and if any information in it is not in line with the actual state of affairs.

Moreover, the adopted act introduces sanctions on the basis of the Fiscal Penal Code with regard to the provisions governing the obligation to submit information on transfer pricing.

According to the newly added Article 80e of the Code of Criminal Procedure, whoever does not submit transfer pricing information to the Head of the National Tax Administration, submits it after the deadline or submits false information, is subject to the penalty of a fine.

In all the above cases, the fine is up to 720 daily rates, and in the case of a minor offence, the perpetrator of a prohibited act is punishable for a fiscal misdemeanour. It is worth mentioning here that according to Article 9 § 3 of the Code of Criminal Procedure, for fiscal offences or fiscal offences is liable, as the perpetrator, also the one who, on the basis of a provision of law, a decision of a competent authority, a contract or actual performance, deals with economic matters, in particular financial matters, of a natural person, a legal person or an organisational unit without legal personality.

Fiscal penal sanctions in force in the current legal status will be the subject of a separate entry.

Author: Paweł Rosiński – Tax Consultant, Tax Advisor Entry No. 13 408