Katarzyna Ziomek | In Principle

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.

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?