Tax proceedings in the second instance, the so-called appeal proceedings are initiated by a taxpayer who received an unfavorable decision in tax proceedings in the first instance. The appeal against the decision of the body of first instance is lodged through this body within 14 days from the date of delivery of the appealed decision. It should also be borne in mind that lodging an appeal to the body of the second instance in due time does not suspend the execution of the decision of the body of the first instance.

The body of first instance which issued the decision under appeal has 14 days to issue a decision revoking the previously issued decision (self-control procedure) or to transfer the case to the appeal body. An appeal against a decision brought by the authority should contain objections against the decision, define the essence and scope of the request being the subject of the appeal and indicate the evidence justifying the request.

Failure to meet the requirements set out in the provisions of the Tax Ordinance regarding the content or deadline of the appeal results in the issuance of a decision closing the appeal procedure by the second instance authority. Such a decision is final for the proceedings in the second instance, however, it is permissible to lodge a complaint with the Provincial Administrative Court.

If the taxpayer meets the formal requirements, the second instance authority reconsiders the case. In the proceedings of the body of the second instance, the same rules of procedure apply as in the case of cases before the first instance.

In the course of the proceedings, the body of the second instance may conduct additional, supplementary evidentiary proceedings, or revoke the appealed decision and refer the case to the body of the first instance for re-examination.

Our experience shows that in complicated cases, the second instance often extends the period of issuing a decision, without being obliged to consider it within a specified time limit.

Both in the course of the proceedings before the first and second instance, the taxpayer may submit any evidence to support his statements, however, the essential evidentiary activities of the authority should be considered in the proceedings before the first instance.

In the course of tax proceedings in the second instance, the tax authority may issue the following rulings:

• a decision upholding the decision of the authority of first instance,
• a decision revoking the decision of the first instance authority in whole or in part and deciding in this respect as to the merits of the case,
• a decision revoking the decision of the first instance authority in whole or in part and discontinuing the proceedings in the case,
• decision discontinuing the appeal procedure,
• a decision repealing in its entirety the decision of the body of first instance, pursuant to which the case is referred for reconsideration by this body.

The taxpayer has the right to lodge a complaint against the Provincial Administrative Court against the issued decision of the second instance authority within 30 days from the date of delivery of the decision.

Receipt of the decision of the second instance authority, with which the taxpayer does not agree, authorizes him to lodge a complaint with the Provincial Administrative Court (WSA) within 30 days from the date of delivery of the decision.

The judgment issued by the Provincial Administrative Court decides whether the decisions of the first and second instance authorities were issued in accordance with the law, both in terms of procedure, in particular, evidence proceedings and the correct application of the law. Therefore, the PAC does not conduct evidence proceedings, but only examines whether the authorities have properly conducted the proceedings and verifies the correctness of interpretation and application of the provisions constituting the basis for the assessment of tax arrears.

The ruling of the Provincial Administrative Court may overrule the decisions of the tax authorities or dismiss the complaint, declaring that they do not violate the applicable law. In the event of a negative ruling by the Provincial Administrative Court, the taxpayer has the right to appeal to the Supreme Administrative Court in Warsaw. The deadline for considering the complaint by the Provincial Administrative Court in Wrocław is approx. 1 year.

In the event of a negative ruling by the Provincial Administrative Court, the taxpayer has the right to lodge a complaint with the Supreme Administrative Court, which must be prepared by a professional attorney. The judgment of the Supreme Administrative Court is the final decision taken by the Court in Poland.

In the case of a negative judgment of the Supreme Administrative Court, it is possible to appeal it to the European Court of Justice, if it is possible to prove that the provisions of Polish law are inconsistent with European provisions that have been incorporated into the Polish legal system. As above, the deadline for considering a complaint by the Supreme Administrative Court is approx. 1 year.