The judgment of the Polish Supreme Administrative Court (NSA): a tax authority cannot automatically challenge a transaction price simply because it disagrees with the valuation method applied. When questioning the arm’s length nature of a transaction, the authority must demonstrate far more than mere reservations regarding the adopted methodology.
Can a taxpayer confirm in the TPR form that its transfer prices were arm’s length if it has previously adjusted its taxable income to an arm’s length level? A recent judgment of the Voivodeship Administrative Court in Gliwice suggests that a mere adjustment of the CIT settlement does not determine whether the conditions of a…
The Supreme Administrative Court (SAC) is increasingly indicating that certain capital transfers may also constitute a controlled transaction within the meaning of transfer pricing regulations. Such an approach also applies to arrangements that were previously often regarded as tax-neutral, including the free-of-charge share redemption. In practice, this may entail an obligation to conduct a thorough…
Should the robotics relief be settled together with depreciation, or as a one-off deduction? Diverging interpretations raise doubts regarding the treatment of eligible costs.
Transactions carried out between companies and members of the management board are, in themselves, neither unusual nor uncommon in business practice. Nevertheless, in order to avoid such transactions being challenged by the tax authorities, both the commercial rationale for such arrangements and their terms should be carefully analysed from a tax perspective.
The Court of Justice of the European Union has, for the first time, ruled in a case directly addressing the VAT implications of transfer pricing adjustments (Case C-603/24 Stellantis Portugal). This is a highly significant and controversial issue across the EU due to the absence of a harmonised approach among Member States.
A taxpayer who has not received payment for goods or services supplied may – subject to certain conditions – benefit from a bad debt relief, i.e. to reduce the output VAT previously paid to the tax authorities (Article 89a of the VAT Act). However, as confirmed by the Court in case T-233/25 Mokoryte, this possibility…
Transfer pricing documentation within multinational capital groups has become an invaluable tool not only in the context of transfer pricing verification, but also in relation to other taxes, including withholding tax (WHT). In Poland, tax authorities are increasingly referring to group documentation, namely the Master File, during WHT audits.
Recently, there has been a lot of discussion about the Act amending the Act on the State Labour Inspection and certain other acts, which was signed by the President of the Republic of Poland. Understandably, in cases where a B2B contract is reclassified as an employment contract, the focus is primarily on the risks related…
According to the current position of tax authorities and administrative courts, the tax base for the solidarity levy can be reduced by tax losses from previous years. However, it should be noted that the deduction of tax losses is only possible within the same source of income. Solidarity Levy The solidarity levy has been…