Financial transactions are one of the most common transactions between related parties and also most frequently controlled by the tax authorities. Due to the an extensive catalogue of financial transactions and their level of complexity, taxpayers often face problems in justifying the arm’s length nature of these transactions. In addition, the unfavourable approach to taxpayers…
With each passing year, courts increasingly confirm that a properly prepared benchmarking study can be an extremely important tool, both for taxpayers and tax authorities. Tax authorities often challenge benchmarking study by either conducting new analyses or modifying those presented by taxpayers. This frequently leads to increased tax liabilities. Therefore, having a reliable transfer pricing…
Price adjustments are still not a clear-cut issue and raise questions for taxpayers. In 2023, administrative courts issued rulings on adjustments in three main areas described below. Definition of transfer pricing adjustments It is worth recalling that TP adjustments refer to transactions between related parties and are an important part of business practice. However, their…
Intra-group loan Intra-group loans, like other related party transactions, should be made on an arm’s length basis. In order to verify loan transactions to comply with the arm’s length principle, the comparable uncontrolled price method is most often used in the external variant. Data for this analysis is obtained from external specialized databases. Tax authorities…
In the dynamic business world, planning of settlement between related parties is becoming an essential part of groups’ business strategy. Changes in the market affect the development of new technologies, products and services. They determine the activities of companies in achieving economic benefits and competitive advantages. Well planned settlements are the basis for business success,…
An APA (advance pricing arrangement) is an agreement on the transfer price applied in transactions between related parties, concluded between a taxpayer and the Head of the National Revenue Administration. The APA takes the form of an administrative decision and constitutes a confirmation by the tax authority of the arm’s length principle of settlements between…
Recently, there has been a noticeable increase in interest in ESG topics. This is due to two reasons: the increase in stakeholder interest in off-balance sheet activities and the extension of the ESG reporting obligation (so far, the ESG issue in Poland concerned about 150 entities, but due to the change in the rules, from…
The deadline for submitting the CBC notification (CBC-P) for 2023 to the Head of KAS is coming soon – 31 March 2024 (for all entities whose financial year matches the calendar year). This obligation covers entities belonging to capital groups that are subject to the CBC-R. Who? The obligation applies to entities (which are not…
Why is it important to accurately determine the functional profile? The functional profile should be understood primarily as the role of an entity in a transaction. It depends on its business activity in the market or in the transaction (e.g. manufacturer, distributor) and its level of involvement in the transaction in terms of functions performed,…
Recently, intangible services have been one of the key areas reviewed during tax audits. As statistics made available to us by the Ministry of Finance show, service transactions account for almost 30% of all transactions reported by taxpayers in 2020-2021 in the TPR form, of which as much as 10% are intangible services. Intangible services…