In the coming days the Sejm will likely decide on the draft anti-tax avoidance legislation which may be introduced as early as 1 July 2016.
The proposed draft, if enacted, will give the Polish tax authorities almost unlimited powers to recharacterise transactions whose main purpose, they believe, is tax avoidance. This follows on from Panama, Luxleaks, Swissleaks etc but the rules can also work on a more prosaic level (such as in respect to self-employment rather than Umowa o pracę).
Taxperience is organizing an international tax workshop on 3rd June at Villa Foksal (10:00 followed by lunch) which will be presented together tax adviser colleagues from our global network (Netherlands, France and USA)
The event costs 250 PLN net (price includes one-on-one consultations with tax advisors from other countries and lunch) and the number of places is limited.
To book your place, please e-mail Katarzyna at firstname.lastname@example.org
The program will cover, among others:
• General anti-avoidance rules
• Extension of permanent establishment concept
• Hybrid mismatches and restriction of interest deductions
• New transfer pricing reporting requirements, particularly benchmarking obligations
• Rules requiring that payments for intangibles reflect value creation
Topic 1 – General anti-avoidance rules
We expect the Polish Parliament to imminently implement wide ranging anti-tax avoidance provisions, drawing on experience of similar provisions which other countries have introduced in recent years. We will consider the proposed Polish provisions and compare with other countries’ experiences with their GAAR.
Topic 2 – New definition of permanent establishment
BEPS Actions 7 and 15 introduce a much broader definition of the permanent establishment concept with the aim of taxing entities in a given jurisdiction in line with the activities performed and substance located in that jurisdiction. This will impact commissionaire and dependent agent structures which hitherto have reported minimal taxable profits in territories where they operate. We will update you on progress in implementing rules and revising tax treaties via the so-called multilateral instrument.
Topic 3 – Hybrid mismatches and restriction of interest deductions
Poland, in line with many other EU countries has implemented rules to block tax advantages arising from so-called hybrid mismatches (for example, where one jurisdiction allows a transaction as a taxable cost and the other does not recognise the same transaction as taxable income). New regulations also limit the possibility to reduce the tax base via interest deductions. We summarise the implementation of these regulations in key EU countries.
Topic 4 – Transfer pricing reporting
Wide ranging transfer pricing reporting rules are being introduced effective from 2016 and 2017 which will require increasing cooperation between parents and subsidiaries to prepare and disclose information about inter-company transactions and support pricing with benchmarking analyses. We consider how corporations can streamline these obligations to spread the compliance burden between group entities.
Topic 5 – Intangibles and place of value creation
BEPS Action 8 aims to ensure that income from intangible property is recognised in the jurisdictions where value is actually created. We review new legislation in the EU restricting tax advantageous regimes involving “patent boxes” which allow income from intangibles to enjoy low rates of taxation. We consider rules limiting deductibility or treaty benefits associated with licence fees paid to licensors which do not create or are not beneficial owners of IP.
Matthew O’Shaughnessy, Partner Taxperience / Poland
Matthew O‘Shaughnessy has 23 years experience advising major companies on Polish and international tax matters. Matthew was born and educated in the UK and came to Poland in 1992, originally to work in PriceWaterhouse, Warsaw. In 2007 Matthew registered his own advisory business and has co-operated closely with major firms such as Ernst and Young. Matthew is a certified Polish Tax Adviser and possesses an MBA in International Business from City University Business School in London. International Tax Review recognised Matthew as a leading transfer pricing adviser in Poland.
Ruben van Aarle, Partner Taxperience / the Netherlands
Ruben van Aarle, advises a variety of businesses, ranging from starters in the market (often Internet, IT, and technology-driven businesses) to internationally operating SMEs and publicly traded corporations. Ruben is keen on conceiving original tax solutions and thinking along with his clients in implementing the solutions efficiently. Ruben's out-of-the-box way of thinking, which is typical of all partners at Taxperience, clearly manifests itself in his advisory work. Ruben has been a member of the Dutch Association of Tax Lawyers since 1999.
Denis Fontaine-Besset, Partner STC Partners / France
Denis specialises in taxation as applied to the financial markets and financing transactions. Denis is an expert on the taxation of institutions as well as products offered to companies. He has participated in the legal and tax arrangement of complex financial transactions. A tax attorney, he also provides assistance in the area of transfer pricing. He is a member of IFA.
Kevin Kiyan, Managing Director Andersen Tax / USA
Kevin is a Managing Director in US National Tax office and Andersen’s Transfer Pricing leader. Kevin has over 27 years of professional experience and has led all major aspects of Transfer Pricing issues, including planning/feasibility analyses, IP migration/restructuring, cost-sharing, Advanced Pricing Agreements (APAs), audit defense/litigation and global transfer pricing documentation. Kevin has extensive experience serving clients in major industry sectors, including: media & entertainment, engineering & construction, apparel, retail consumer products, telecommunications/ networking, pharmaceuticals/ healthcare and software development/data systems.
Adam Steinberger, Managing Director Andersen Tax / USA
Adam, the Office Managing Director of the Andersen’s Silicon Valley office, has over 18 years of domestic and international tax experience serving clients from emerging growth companies to large multinational enterprises. He advises both publicly-held and private businesses in a variety of industries, including semiconductor, software, manufacturing, biotechnology, retail, media and real estate. Adam's primary tax and business practice areas include: accounting for income taxes, compensation and benefits tax planning, tax controversies, global mergers and acquisition planning, tax credits, including research and experimentation tax credits, tax compliance.