The job of a tax advisor is to keep tax issues from overwhelming a business. Therefore, hand in hand with our Client, we struggle to come up with such schemes of company’s functioning which would earn the name “business first”.
Poland
The job of a tax advisor is to keep tax issues from overwhelming a business. Therefore, hand in hand with our Client, we struggle to come up with such schemes of company’s functioning which would earn the name “business first”.
In my previous post I brought up the topic of difficulties which result from predicting conditions under which entrepreneurs will have to operate in the future. This is indeed a key challenge when specifying the scale and directions in which a company develops, as they are the key factors influencing the ability to create value. Therefore, despite difficulties, one should neither neglect nor belittle this very process.
Art. 79 p. 4 of the Accounting Act indicates that whosoever, contrary to its provisions, fails to submit financial statements or management reports to the relevant court register, is liable to a fine or penalty of restriction of liberty. Penalties for failure to submit financial statements are also due to the Fiscal Penal Code.
When at the beginning of 2003 first provisions concerning the interpretation of tax law were included in the Tax Ordinance Act, the Polish Ministry of Finance proudly announced its great success. Taxpayers were informed that, from this day on, legal certainty shall increase significantly, resulting from the fact that the interpretation and application of legal provisions will be, technically speaking, known in advance. In practice, as it usually happens, it turned out that the greatest problem is to ensure the uniformity of issued interpretations (initially such interpretations were to be obtained from the head of each tax office, at present they are issued only by a few entitled directors of tax chambers) and to determine the scope of protection guaranteed to taxpayers applying for an interpretation.
Business transactions conducted by taxpayers require appropriate documentation.
That is a reason for keeping tax books. They constitute an evidence for proper accounting and they should, therefore, reflect the actual state.
Only reliably and correctly kept books may be considered an evidence in the case of tax proceedings pending before tax authorities.
What is more beneficial from the perspective of tax deductible costs: car rental or an operating lease? What is the significance of various forms of agreements for an entrepreneur – taxpayer?
A taxpayer declaring an excess of input VAT over output VAT has the right to either carry it forward to the following tax period or to obtain a refund to a bank account. The shortest period in which the tax office will refund VAT is 25 days.
Whilst browsing the Internet recently, I came across an interesting report dedicated to economic and trade cooperation between Poland and Italy. Among a lot of interesting data referred to in this publication, I paid attention particularly to these relating to the size of Italian companies which invest in Poland.
Outsourcing is nothing other than allocating business processes in an enterprise and commissioning them to external companies, who are capable of carrying out these processes more effectively – this is the theory. But should we give such a delicate and important matter as accountancy into external hands? Taking into account the sector of small and medium enterprises – definitely yes. In the case of SME, accounting outsourcing has a significant advantage over internal accounting.
Very often during our meetings with Clients from Germany the Germans comment on the Polish economic reality. We hear that at the moment of entering Poland, a foreigner is overwhelmed with an impression of dynamics – a lot is going on in our country: numerous building sites, modernizations, renovations… moreover, everywhere one can meet energetic people who, despite typical Polish complaining, look optimistically into the future. A lot of good intentions can be felt, which – against the proverb – contribute to shared success. Cinders, which are mentioned in the word of wheeling and dealing, are nowhere to be seen. But why exactly are Germans so excited about Polish dynamics?