Along with the change in the transfer pricing regulations in 2019, the provisions on penal and fiscal sanctions resulting from the application of these regulations were changed. The provisions of Art. 80e § 1 of the CCC and art. 56c § 1 of the KKS refer directly to the breach of obligations related to the submission of a declaration on the preparation of local transfer pricing documentation and information on transfer pricing. These sanctions are summarized in the table below.
| Scope of the obligation | Premises | Consequences of non-compliance |
|---|---|---|
| Statement on the preparation of local transfer pricing documentation | – Failure to submit the declaration to the competent tax authority – Submission of the declaration after the deadline – Confirmation of information inconsistent with the actual state in the submitted declaration | A fine of up to 720 daily rates (i.e. from PLN 67,197.60 to PLN 26,879,997.60 in 2021). In the case of a minor amount, a fine for tax offenses. |
| Information on transfer pricing | – Failure to submit information on transfer pricing to the Head of KAS – Late submission of information – Submission of false information | A fine of up to 720 daily rates (i.e. from PLN 67,197.60 to PLN 26,879,997.60 in 2021). In the case of a minor amount, a fine for tax offenses. |
In addition to the penalties resulting from the obligations to submit a transfer pricing information and a declaration of the preparation of local transfer pricing documentation, other penalties as described below also apply.
Fine of up to 120 daily rates (Article 80 § 1 of the Code of Civil Procedure)
Article 80. [Neglect of tax information]
§ 1. Who, contrary to the obligation, does not submit the required tax information to the competent authority, shall be subject to a fine of up to 120 daily rates.
The fiscal penal code in art. 80 § 1 stipulates that failure to submit tax documentation, which is characterized under Polish tax law as tax information, within 7 days from the date of the request, may result in a fine of up to 120 daily rates in the event that, after the tax procedure, additional tax liability.
The daily rate may not be lower than one-thirtieth of the lowest monthly salary at the time of adjudication in the first instance, nor may it exceed 400 times (Art. 23 § 3 of the Code of Penal Code).
With the current minimum remuneration for work in 2021, the range of possible penalties is from PLN 11,199.60 to PLN 4,479,999.60 .
The amount of fines for tax offenses in 2021
A fine for a tax offense
| A fine for a tax offense | ||
|---|---|---|
| limits of the daily rate minimum fine maximum fine | 1/30 × 2.800 PLN 400 × 93,33 PLN 120 × 93,33 PLN 120 × 37.333,33 PLN | 93,33 PLN – 37.333,33 PLN 11 199,60 PLN 4 479 999,60 PLN |
Fine up to 240 daily rates
Article 80. [Neglect of tax information]
§ 1. Who, contrary to the obligation, does not submit the required tax information to the competent authority, shall be subject to a fine of up to 120 daily rates.
§ 2. The payer, the entity referred to in Art. 41 of the Act of 26 July 1991 on personal income tax, non-performing the function of a payer, paying entity, business entity or intermediate recipient who, contrary to the obligation, does not submit the required tax information or information referred to in art. 42 sec. 2 paragraph 2 or article. 44d paragraph. 1, 3, 5 or 7 of the Act referred to above, shall be subject to a fine of up to 180 daily rates.
§ 2a. Who, contrary to the obligation, does not submit to the competent authority the information on US reportable accounts referred to in Art. 4 sec. 1 point 2 of the Act of 9 October 2015 on the implementation of the Agreement between the Government of the Republic of Poland and the Government of the United States of America on improving the fulfillment of international tax obligations and implementing the FATCA legislation (Journal of Laws , item 1712 and of 2016, item 1579) and 1948 ) is punishable by a fine of up to 180 daily rates.
§ 3. If the information specified in § 1-2a has been submitted untrue, the perpetrator shall be subject to a fine of up to 240 daily rates.
§ 4. In the event of a minor offense, the perpetrator of the offense specified in § 1-3 shall be subject to a fine for a tax offense.
For submitting false tax information in accordance with art. 80 § 3 of the Code of Commercial Companies, there is also a sanction of up to 240 daily rates.
In this case, the range of the possible penalty is PLN 22,399.20 – PLN 8,959,999.20 . In the event of a minor offense, the perpetrator of the offense is subject to a fine for a tax offense.
The amount of fines for tax offenses in 2021
A fine for a tax offense
| A fine for a tax offense | ||
|---|---|---|
| limits of the daily rate minimum fine maximum fine | 1/30 × 2.800 PLN 400 × 93,33 PLN 240 × 93,33 PLN 240 × 37.333,33 PLN | 93,33 PLN – 37.333,33 PLN 22.399,20 PLN 8.959.999,20 PLN |
Fine of up to 720 daily rates, imprisonment, or both
Article. 54. [Tax evasion]
§ 1. A taxpayer who, by avoiding taxation, does not disclose to the competent authority the subject or base of taxation or does not submit a declaration, thus exposing the tax to depletion, shall be subject to a fine of up to 720 daily rates or imprisonment, or both.
§ 2. If the amount of the tax subject to depletion is of low value , the perpetrator of the offense specified in § 1 shall be fined up to 720 daily rates.
Art. 53 § 14.
A small value is a value which, at the time of committing a prohibited act, does not exceed 200 times the amount of the minimum wage.
The legislator provides for sanctions not only for failure to complete or present the required tax documentation, but also for its unreliable preparation. A taxpayer who, avoiding taxation, does not disclose to the competent authority the subject or base of taxation or does not submit a declaration, thus exposing the tax to depletion, shall be subject to a fine of up to 720 daily rates or imprisonment, or both.
If the court decides to apply the highest number of daily rates provided for in the regulation, the scope of the fine will be PLN 67,197.60. up to PLN 26,879,997.60 . The Act stipulates that if the amount of the tax subject to depletion is of low value, i.e. does not exceed 200 times the minimum wage, the perpetrator of the act specified in Art. 54 § 1 is punishable by a fine of up to 720 daily rates. This means that the penalty of imprisonment will threaten taxpayers in cases with a value exceeding PLN 560,000 in 2021.
The amount of fines for tax offenses in 2021
A fine for a tax offense
| A fine for a tax offense | ||
|---|---|---|
| limits of the daily rate minimum fine maximum fine | 1/30 × 2.800 PLN 400 × 93,33 PLN 720 × 93,33 PLN 720 × 37.333,33 PLN | 93,33 PLN – 37.333,33 PLN 67.197,60 PLN 26.879.997,60 PLN |