Poland: Increased interest of the tax authorities in transfer pricing and business restructuring

Tax Insights ()
In Poland, as in many other countries, Transfer Pricing (TP) is receiving increased attention by the tax authorities.
TP is mentioned specifically in the annual objectives of tax control (audit) offices. Consequently, we see an increasing number of TP audits as well as difficult TP disputes reaching the courts. As courts look to understand the facts of the case in detail, the proceedings are typically protracted. It is therefore key that taxpayers focus on proving the substance of transactions during the fact gathering (“pre-assessment”) phase of a tax audit.

There have also been recent changes to the Polish tax legislation that impact TP: including major modifications to the Decree on Transfer Pricing (August 2013) as well as guidance on TP aspects of a business restructuring (February 2014). These changes reflect many of the issues being addressed by the Organisation for Economic Cooperation and Development’s (OECD) action plan on Base Erosion and Profit Shifting (BEPS).