Administrative and court proceedings

Tax inspections and proceedings 

Inspections conducted by tax authorities can be divided into tax, and customs and fiscal inspections. Each of the inspection types has a governed course and scope, as well as a list of tools available to fiscal authorities aiding its implementation. The objective of an inspection is to check the correctness of tax accounts that may include verifying transactions and documents, interviewing witnesses or a visual inspection. However, tax proceedings are initiated when an inspection identifies irregularities related to a taxpayer’s or contributor’s fulfilment of the obligations, and such deficiencies have not been previously rectified through filling a relevant statement or statement correction. 

We offer extensive support including, among others: 

1. Handling disputes on behalf of a taxpayer/contributor or as an advisor, aimed at obtaining a favourable ruling at the earliest possible stage of proceedings before tax authorities, including taxpayer/contributor representation at each stage of the proceedings, and in all procedural actions enabling acting through a proxy.  

2. Developing proceeding strategy, and analysing potential process outcomes and scenarios.
3. Developing motions, clarifications, appeals, objections and other pleadings.
4. Support in the process of compiling appropriate documentation required by tax authorities.  
5. Active participation in all activities of the authorities conducted in the course of the proceedings, in particular in questioning of the taxpayer and witnesses or visual inspections. 

Proceedings against administrative courts 

In the event of a negative tax authority ruling of the second instance, a taxpayer has the right to appeal to an administrative court. Filing an appeal to a provincial administrative court is subject to previous exhaustion of taxpayer’s remedies and is possible only against a decision or ruling of a tax authority of the second instance. An appeal to the Supreme Administrative Court may be filed against an unfavourable judgement of the Provincial Administrative Court, and requires the participation of a professional representative (lawyer, solicitor or tax adviser). A taxpayer or contributor may also become a party to court proceedings against its own initiative, e.g., when a tax authority files a cassation appeal to the Supreme Administrative Court (NSA) against a judgement of a lower-instance court favourable to the taxpayer/contributor. 

In relation to court and administrative proceedings, we offer: 

1. Developing and handling proceedings before administrative courts as a legal representative, in order to obtain a more favourable ruling as soon as possible. 

2. Representing a taxpayer/contributor at each stage of the proceedings before administrative courts, including the Supreme Administrative Court, with the participation of tax advisers, solicitors or attorneys making up our team. 
3. Developing pleadings, including: 

– ordinary legal remedies (appeals, cassation appeals to the Supreme Administrative Court, complaints); 

– extraordinary remedies (including appeals for declaring unlawfulness of a final decision, revision applications);

– complaints against inaction of tax authorities or proceeding lengthiness;

– motions to administrative courts on referring a legal query to the Constitutional Court or a preliminary question to the EU Court of Justice in cases, wherein prior determination of constitutional doubts or those arising from EU law is procedurally justified;

– a constitutional complaint to the Constitutional Court to the extent related to taxation.

Tax interpretations and advance decisions, Social Insurance Institution and other interpretations 

Based on the provisions of the Tax Ordinance Act, Poland has a well-functioning mechanism for obtaining individual tax law interpretations, i.e., a taxpayer or contributor being issued opinions of a tax authority on the interpretation of a specific provision of the law. Interpretations are usually issued not later than 3 months from filing a request, and do not entail high administrative fees. Moreover, in the case of confirming a favourable interpretations, a taxpayer/contributor gains a relatively strong litigation and financial safeguard. ZUS (Social Insurance Institution) interpretations related to social insurance premium obligations function similarly. When it comes to tax law, there are also available risk mitigation instruments other than individual interpretations, including, an advance decision (in terms of the application of the so-called tax avoidance clause), advance pricing agreement (in terms of confirming transfer price arm’s length nature under a transaction between related entities), binding tax rate information (VAT-related), etc. 

We provide taxpayers and contributors with comprehensive support in obtaining various types of interpretations and procedural safeguards, also in the event of an unfavourable interpretation. In this respect, we offer a full range of services associated with handling proceedings at all administrative and judicial instances. Our services include, in particular, support in obtaining: 

1. Tax law interpretations (individual interpretations). 
2. Advance decisions 
3. Binding rate-related information. 
4. Interpretations of the Social Insurance Institution (ZUS). 
5. Interpretative decision of the Statistics Poland (GUS). 
6. Interpretations based on the Gambling Act. 
7. Interpretations based on the Business Freedom Act. 

Penal-fiscal proceedings 

Inspection-related activities of tax authorities, ZUS (Social Insurance Institution), and relevant state aid-competent institutions, resulting in substantive legal findings unfavourable to the taxpayer or contributor, most frequently involve the risk of initiating independent penal fiscal proceedings against a natural person responsible for, e.g., tax arrears. Penal fiscal proceedings may be independent of administrative, e.g., tax proceedings. Not Tax Ordinance, but rather the penal fiscal code and the code of criminal procedure provisions apply in relation to penal fiscal proceedings.  

Our support includes, among others: 

1. Representing a Client at each stage of the proceedings, i.e., before pre-trial authorities and the ordinary court, always with the aim to obtain a favourable outcome and implement principles safeguarding the interests of an entity in the future. 

2. Participating in all activities, including hearings and trials. 
3. Developing required pleadings. 
4. Creating internal regulations to exclude tax settlement cases from the responsibilities of, among others, members of the Company board. 

Inspections and other proceedings related to state aid 

For many years, Poland and Polish entrepreneurs have been the largest beneficiaries of EU funds. Entrepreneurs are entitled to and benefit from a number of support forms, including those classified as state aid. Its correct utilization is subject to verification by relevant authorities.  

In this respect we offer, in particular: 

1. Substantive support and representation in the course of inspections by competent institutions. 

2. Assistance during potential appeal proceedings. 
3. Analysis and verification of correct settlement of state aid granted. 
4. Consulting in terms of the correct and optimal settlement of state aid granted. 
5. Developing requests for interpretation of state aid law provisions. 
6. Support at each stage of state aid proceedings, including in the case of a state aid request rejection (for formal or substantive reasons). 

ZUS inspections among premium payers 

The Social Insurance Institution (ZUS) is entitled to conduct inspections aimed at assessing the reliability and correctness of the contributors’ fulfilment of their obligations and tasks in relation to social insurance and premiums imposed. ZUS inspectors conduct inspection activities. They can also audit the fulfilment of contributors’ obligations in relation to reporting insured persons to the NFZ (National Health Fund) and the payment of health premiums. 

We offer, in particular: 

1. Substantive support and representation during ZUS inspections; 

2. Support in the course of appeal proceedings against a ZUS decision, including at the judicial stage;  
3. Verifying the correct settlement of premium contributors, with particular emphasis on the areas inspected by ZUS;  
4. Review of civil law contracts concluded and recommendations to minimize risks associated with contract reclassification; 
5. Developing requests for issuing written interpretations in the field of social insurance law provisions, and proceeding assistance in the event of a unfavourable interpretations; 
6. Consulting and support in implementing solutions related to social security system burden;  
7. Developing contract templates.