The tax office is snooping around Poles’ contracts. For many, this means problems
The Tax Office is looking at Poles’ contracts. In many cases, it may determine that there has been unacceptable tax avoidance, which means trouble.
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Many Poles work on B2B (business to business) contracts. This means that a given person sets up a sole proprietorship and signs a contract with the employer. For the parties, this is often a beneficial solution because it means fewer formalities and lower taxes. However, the tax office may have a different opinion and consider this form of employment as unacceptable tax avoidance – reports Bankier.pl.
Fikus looks at Poles’ contracts
In June 2024, the head of the National Tax Administration issued a security opinion in which: considered a B2B contract between a former employee and an employer to be tax avoidance. This concerns a situation in which a given person was employed under an employment contract, which was terminated, and then B2B employment took place.
The tax office found such action inconsistent with Art. 119a § 1 of the Tax Ordinance, according to which it is unacceptable to undertake activities that result in obtaining a tax benefit that is contrary to the idea of the tax act, which benefit was at least one of the main purposes of performing this activity, and the method of operation was artificial. In this case, it was about, among other things, exceeding the threshold of PLN 120,000. PLN of income, at which 32% is paid. tax. With B2B contracts, the rates are lower.
If the tax office finds that such tax avoidance has occurred, it may demand that the employer pay the outstanding taxes together with interest. as if they were still employed under an employment contract at the time of switching to a B2B contract. In turn, employers can claim reimbursement from employees.
