The end of many years of disputes? The taxpayer will enter into an agreement with the tax office

The taxpayer will be able to conclude a tax settlement with the tax office – according to the draft amendment to the Tax Ordinance published on Monday. The settlement will cover tax arrears and is intended to speed up the resolution of tax disputes.

On Monday, a draft amendment to the Tax Ordinance was published on the website of the Government Legislation Center. The project prepared by the Ministry of Finance aims to introduce the institution of a tax settlement into Polish law.

The primary goal of this procedure is to strive to reduce the number and length of tax disputes accompanying the application of tax law in Poland by preventing their occurrence and enabling their earlier resolution under the terms of the parties' agreement. Institutions of this type are classified as alternative dispute resolution instruments around the world – we read in the justification for the project.

It was explained that the use of the option to conclude a settlement will be voluntary – the taxpayer will be able to make such a proposal, and the tax authority will have to consent to it. Such a settlement may replace the activities of the National Tax Administration in the field of debt collection.

“From the point of view of the needs of the state budget, the project aims to have a positive impact on public finances in the long term by improving tax collection combined with rationalizing the efforts of the National Tax Administration. At least some tax matters with a risk of escalation into a long-term and uncertain dispute with the obligated entity will be settled more quickly and simply,” we read in the justification.

It was added that a tax settlement may only apply to tax liabilities whose payment deadline has expired.

The proposed act is to enter into force on January 1, 2028 (PAP)

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