Our Clients from the banking sector are, in particular, interested in projects relating to tax planning, tax effective investment structures and projects concerning the settlement of foreign exchange differences and derivative instruments for tax purposes.
Following our practice in this scope, the tax risk areas most often observed by our Clients and also frequently identified by us relate to:
- analysis and evaluation of selected settlements and actual economical events that are crucial in relation to the tax risk borne by Banks, among others, in the scope of the tax treatment of costs, adjusting of the accounting result to the tax result, correctness of creating provisions and the deferred tax asset;
- determination of cash basis income from interest to be received and tax treatment of capitalized interest;
- tax treatment of restricted revenues and revenue obtained upfront;
- tax treatment of transactions of sale/purchase of securities, and in particular, the principles of tax treatment of discount, premiums and interest included in the purchase price of bonds;
- tax treatment of receivables purchased at a discount;
- taxation of foreign exchange differences;
- provisions for credit receivables, and inter alia:
- credits in foreign currencies or denominated in foreign currencies;
- moment of recognition of provisions for tax purposes;
- receivables due versus arrangements proceedings / rearranging the receivable into instalment settlements;
- right to recognize part of provision for lost credit receivables of which the uncollectibility has not been made probable;
- recognition of receivables as uncollectible;
- tax implications of acquiring / selling assets taken over;
- tax implications of the disposal of banking receivables.
Moreover, we offer our Clients tax consulting services in the scope of:
- assistance in setting up branches of foreign banks;
- restructuring of receivables;
- minimization of foreign withholding tax burden through the assistance in completing and filing proper returns (e.g. W-8BEN for payments from USA);
- collection of Polish withholding tax on payments made to corporates and individuals and assistance in fulfilling information requirements in this scope;
- purchase of foreign bonds and issue of securities, and in particular, of derivative instruments;
- tax analysis of the purchase of centralized banking IT systems and capitalization of expenditure connected with realization of such investments.
