| In Principle

Introduction of the OECD’s common standard for automatic exchange of financial information, as well as worldwide enforcement of FATCA by the United States, means that structures previously offering confidentiality will now be affected by the mandatory international system of exchange of tax information. This applies in particular to trusts and foundations.

Work in the OECD to expand the exchange of tax information seeks to bring into the mainstream jurisdictions that have typically been regarded as tax havens or countries applying harmful tax competition.

Member states of the European Union, following other jurisdictions around the world, are stepping up their work on extending the scope of automatic exchange of tax information, which is regarded as the most effective means of combating tax avoidance.

With economic globalisation, foreign investors often decide to pay capital contributions to Polish companies in foreign currencies. This raises the question of how to convert these amounts into Polish currency.

Operators of crowdfunding platforms should carefully follow the work on the Network and Information Security Directive. The last draft of the proposal suggests that crowdfunding platforms could be covered by the directive.

A software manufacturer’s role in criminal investigations and hacking its own programming

Payments to the rightful owners of real estate taken over without legal grounds by the State Treasury or local governmental unit are subject to personal income tax as income “from other sources.” Whether the payments are subject to VAT depends on the specific circumstances.

Income from the sale of recovered real estate expropriated under the Warsaw Decree may be subject to personal income tax.

Damages won from the State Treasury are exempt from personal income tax. Does this exemption also apply to statutory interest awarded in a legally final judgment?

Benjamin Franklin said nothing is certain but death and taxes. For heirs, the latter can be a consequence of the former. Lawmakers have made certain that the passage of time does not discharge tax obligations connected with an inheritance even decades into the past. Tax obligations can be revived as a result of certain events provided by law.

There is divergence in the case law on whether the percentage rate that should be applied in setting the amount of inheritance tax is the rate in force on the date the tax obligation accrued or the date when the tax authority issues the decision setting the amount of the tax.

The Inheritance and Gift Tax Act provides special exemptions for persons who inherit landmarks but are not eligible for the exemption for inheritance from family members. But not every heir of an old building or a fine piece of Chippendale or Biedermeier furniture will be exempt from the tax.