One week left to repeatedly report cross-border tax schemes!
An obligation to repeatedly report cross-border tax schemes
Effective from 1 July 2020, the tax scheme reporting regulations (MDR) were amended upon the Act of 28 May 2020 amending the corporate income tax act, the act on goods and services tax, the act on tax information exchange with other states and some other acts (Journal of Laws of 2020 Item 1106; hereinafter: “Amending Act”).
The amended regulations require, without limitation, that cross-border tax schemes be repeatedly reported to the Head of KAS if the first step of their implementation was taken between 26 June 2018 and 30 June 2020 (Art. 13 of the amending act).
Additionally, on 1 July 2020, TSNs (Tax Scheme Numbers) assigned before this date to cross-border tax schemes became invalid.
In practice this means that beneficiaries who filed the MDR-1 report on cross-border tax schemes with the Head of KAS will be obliged to re-submit it to the Head of KAS.
The obligation results from the need to adjust the information to the requirements of the EU law (EU scheme). Poland, having implemented the provisions of Directive 2018/822 very fast, prepared forms which did not include all the required information. The repeated reporting must be based on the new XML scheme. The amendment is intended to adapt the form to the EU templates.
Deadline
The original deadline for repeated reporting of cross-border schemes was 16 August 2020.
However, due to the COVID-19 pandemic, upon the Regulation of the Minister of Finance of 30 June 2020 on extension of certain deadlines for informing about tax schemes and tax information exchange with other countries, the deadline for repeated reporting of cross-border tax schemes by beneficiaries (MDR-1) was extended until 31 January 2021.
Supporter
The obligation to repeatedly file the report was also imposed on Supporters, who were not initially obliged to report tax schemes “retrospectively”. Supporters are obliged to report schemes for which the implementation commenced in the period between 26 June 2018 and 31 December 2018, with the deadline until 28 February 2021.
Sanctions
A breach of the obligations to inform about tax schemes is a tort referred to in Art. 80f of the Penal Fiscal Code and leads to penal liability.
Failure to comply with the MDR obligations is subject to a fine of up to 720 daily rates. The Penal Fiscal Code also provides for a fine of 240 daily rates for using an invalided TSN.
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If you have not complied with the obligations resulting from the MDR regulations yet, we would like to remind you of your duty in this respect. Should you have any questions or doubts regarding the issues discussed here, we are ready to assist you.
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