At the beginning of 2016, the so-called "research and development relief" (hereinafter: R&D relief) was introduced to the Personal Income Tax Act and the Corporate Income Tax Act. The mechanism of the relief lies in the possibility to deduct from taxable income expense specified in the Act (so-called "eligible costs") incurred by the taxpayer for research and development, despite the fact that the expense has already been recognized as tax deductible.
Each lawyer, but also almost every entrepreneur, at least once in his/her professional life encountered the institution of COMMERCIAL PROXY, which is an example of a classic commercial law institution. Simply put, it can be said that every commercial proxy is a power of attorney but not every power of attorney is a commercial proxy.
In today's article I would like to introduce, mainly on the basis of an analysis of world literature and research of American scientists, factors affecting the effectiveness of internal audit in enterprises.
Finding a "common language" in business relationships at the crossroads of two cultures is an extremely difficult task. Persons from different countries, cultures, environments, do not have common experience and despite the fact that sometimes there is only the Oder River or the proverbial boundary strip separating us, it happens very rarely that the world view, traditions and belief systems are intertwined.
An interesting matter is that it is often easier to buy or sell a big company employing thousands of workers with income counted in billions rather than a company that has several or several dozen employees and generates revenue of (just) several or several dozen million. And paradoxically, it is not about the price that needs to be paid for such an enterprise.
One of the consequences of participation of foreign capital in a company and belonging to a group of companies from different countries is the financial and accounting system imposed by the group.
Foreign shareholders welcome the information that the Polish Accounting Act allows for the possibility of keeping the books abroad. They forget, however, that there are also other requirements that arise from the Accounting Act or tax acts, whose observance is necessary to ensure the compliance of the books kept in accordance with legal regulations.
Establishment of a company in Poland requires the submission of multiple documents before the state authorities and institutions, e.g. the National Court Register. When a shareholder of the established company is a foreign-invested entity, the number of required documents increases by those drawn up abroad. Upon the preparation of relevant documents, foreign entrepreneurs are obliged to legalise them. Then what?
The problem of settling costs in time is that not every cost may be recognised in the ledgers on a one-off basis. The differences between such terms as: cost, expenditure or expense may cause additional trouble.
At the beginning of the year significant changes were introduced in the provisions of the Corporate Income Tax Act, i.a. in the scope of the obligation to charge a flat rate income tax at source in connection with payment of remuneration to foreign entities.
Basically, the place where documents are made available by the seller to the auditor for inspection is the so-called data room. There are two ways to share information in order to carry out due diligence...
