According to the draft provisions, the obligation to develop and publish the report on the implementation of the tax strategy is to cover:
The obligation to publish reports will not apply to entities which are parties to a cooperation agreement under the Cooperation Programme.
The draft legislation specifies a number of elements to be included in the report on the implementation of the tax strategy, in particular:
An important thing is that the company's tax strategy should not only indicate the company's efforts to settle taxes in a timely and reliable manner, but, above all, it should confirm that the way in which the tax processes are arranged within the company truly supports the implementation of these assumptions. Therefore, entities covered by the obligation to develop a tax strategy and publish a report on its implementation will have to thoroughly analyse the processes implemented in their organisation, and perhaps even develop them once again.
Furthermore, it is worth adding that if these procedures are to really ensure reliable and timely implementation of tax obligations, they should also include the specific nature of the operations of a given company. An analysis of the draft regulations suggests that the development of a tax strategy will be a process similar to the development of the MDR procedure or the VAT due diligence procedure.
The reports on the implementation of the tax strategy in accordance with the draft provisions should be published on the company's website no later than by the end of the ninth month following the deadline for submitting the annual tax return.
The new provisions are expected to come into force from 1 January 2021, so it is worth looking more closely at the company's processes towards fulfilling tax obligations. The penalties to be imposed for failure to develop and publish a report can be as high as PLN 1 million.
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