Katarzyna Ziomek
CFC tax: When an anti-avoidance measure becomes a sanction
Imagine a case where a Polish taxpayer holds 1% of the rights to participate in the profit of a foreign company and the other 99% belong to other investors. Nonetheless, Polish law treats the taxpayer as if he held 100% of the rights for the entire year. Moreover, the taxpayer cannot present evidence showing that the facts are otherwise—solely because the foreign company is based in a tax haven. This controversial view was taken by the Province Administrative Court in Warsaw in its judgment of 7 May 2026 (case no. III SA/Wa 125/26).
Settlement of tax disputes: A revolution or a paper promise?
In early May the Polish Ministry of Finance presented a bill to amend the Tax Ordinance to introduce a long-awaited institution: settlement of tax disputes. According to the aims of the proposal, the new solution should reduce the number and the costs of handling tax disputes, by allowing taxpayers and tax authorities to resolve the dispute earlier and amicably, before litigation commences in the courts. But the proposal in its current form raises issues whether it will provide real room for compromise between the parties.
International exchange of tax information: Does it have a real impact on inspectors’ findings?
In cross-border tax cases—particularly involving withholding tax—the evidence often includes information obtained from foreign tax authorities. Such information is intended to help paint an objective picture of the facts. But is it really used that way?
