Collective tax audits in 2023 are underway!  What can the tax office check?  How many years ago does the tax office control?




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The tax office is doing more and more tax audits. After receiving the summons, the taxpayer has two options. The first is to correct irregularities and pay a fee to the tax office. The second is to fight for your rights



The number of tax inspections has increased in 2023. Last year, violations amounting to PLN 3.2 billion were revealed, which means that inspections are effective and therefore there will be more of them this year. What do officials check during an inspection? How many years can the tax office examine the company’s activity?

Contents

  1. Collective tax audits in 2023
  2. Effective tax audits!
  3. What does the tax office check during an inspection?
  4. Billions in revenue to balance thanks to tax audits
  5. Tax Inspections 2023 – Summary

Collective tax audits in 2023

According to data from the Ministry of Finance, tax inspections were launched by almost 10% last year compared to the previous year. Most of them started in Masovian, Lower Silesia and Lesser Poland.

The report shows that it is up nearly 15% year-over-year. The number of activities completed. in addition to And 97% of inspections completed last year showed irregularities. This result is slightly higher than that recorded in the previous year. The volume of irregularities identified by the tax inspections was about PLN 3.2 billion (compared to PLN 3 billion in the previous year).

Experts commenting on this data say that taxpayers should be prepared for another increase in the number of such inspections. They add that the rulers are looking for additional funds because the country’s economic situation requires it.

Effective tax audits!

According to data from the Ministry of Finance, just over 17,000 tax audits were launched in 2022. This is 9.9% more than in 2021.

In the opinion of tax consultant Ewa Flor of ATL Accounting & Payroll, the main reason for the increase in the number of inspections may be changes in tax policy and similar activities carried out by the Ministry. It may also be a consequence of the increased resources and efficiency of the tax authorities themselves.

The increased tax checks can be commented on with one simple statement – governors are looking for money. And where to get it if not from the taxpayer? The country is currently facing a post-pandemic reality and a difficult international economic situation, which is reflected in the current level of inflation. These circumstances alone testify to the lack of funds in the state budget, which is additionally strained by the distribution of funds within the framework of successive government programs – comments of Professor K. Adam Marinski, President of the Polish Institute for Legal and Economic Analyzes, and Chairman of the BCC Tax Committee.

In 2022, entrepreneurs have increased their economic activity, which could lead to more errors in tax settlements. In addition, the monitoring authorities have “frostbitten” their activities.

Last year, more than 18.1 thousand were completed. Tax audits. This is 14.8% more than when there were approximately 15.8 thousand. This increase in the number of completed inspections may indicate that the authorities have increased their efforts to combat tax fraud. This could also mean that the irregularities currently detected relate to less complex cases, because in such cases inspections can be made and completed faster and more inspections can be carried out.

Of the tax audits completed in 2022, approximately 17.6 thousand showed irregularities (97.1%). These indicators testify to the high effectiveness of the mechanisms for selecting the inspection bodies.

In my opinion, there are too many controls and it must be assumed that the increase in their number is associated with the performance of, among other things, online cash registers, the expansion of the STIR system or the obligation to provide JPK files and the automatic processing of data from these systems. The authorities easily and very quickly notice even minor irregularities, such as a few days’ delay in paying the tax or mistakenly not showing the invoice in the sales or purchase register – says Marek Nyczeboruk, tax advisor at Ars AEQUI.

What does the tax office check during an inspection?

During a tax audit, officials check whether the taxpayer is properly fulfilling his tax obligations.

As part of the inspection process, the office may, for example, check whether the taxpayer:

  • Correctly calculated premium due
  • File a tax return on time
  • Pay tax dues on time.

The tax office checks everything that happened in the last 5 tax years.

Billions in revenue to balance thanks to tax audits

In the past year, the largest takeovers were confirmed due to violations identified:

  • in the province Mazowieckie – PLN 1.215 billion,
  • Silesia – 367.3 million PLN,
  • Greater Poland – PLN 282.1 million,
  • Łódź – PLN 233.4 million,
  • Lower Silesia – PLN 177.2 million.

At the end of the list are Warmińsko-mazurskie – PLN 19 million, Świętokrzyskie – PLN 40.8 million, and Lubuskie – PLN 45.7 million (PLN 41.4 million).

After receiving the final inspection report, the taxpayer has two options. The first is to correct the violations reported to him by the authority. The second is to fight for your rights. If at least some taxpayers choose the first option and pay tax in a different amount than was originally announced, it will be an easy cash injection into the budget – says the professor. Mariinsky.

These effects are likely to be greater. But fortunately, a significant part of taxpayers decided to fight for their rights, which in many cases leads them to victory in administrative courts. Inspections with respect to tax liabilities are often initiated for years, as the approaching statute of limitations does not allow for a determination within 5 years of the occurrence of the tax liability. This leads to the effective initiation of tax remedial proceedings, which are intended only to extend the time for issuance of decisions by tax offices. The head of the Polish Institute for Legal and Economic Analyzes says such measures are unacceptable.

However, the Ministry of Finance points out that the magnitude of the findings reached in the course of the inspection is a factor that does not depend directly on the inspection activities, but rather on the scope and extent of attempts to circumvent tax regulations by the inspected persons. The resort misstates that the total amount of so-called footnotes depends on the size and magnitude of attempts to circumvent tax regulations by the inspected entities. According to expert Marek Niczeboruk, such an approach proves that all controlled persons are accused of willfully behaving illegally. And it certainly isn’t.

Tax Inspections 2023 – Summary

We certainly need to prepare for another increase in the number of tax audits conducted by tax offices. The economic situation is not improving, and the increase in tax revenue is unfortunately the largest source of budget revenue. They will be done more efficiently and completed faster. This is facilitated by the use of new tools by the tax authorities to make their activities more effective and efficient – professor claims. Mariinsky.

Other experts are of the same opinion. As Ewa Flor, the tax advisor, predicts, in 2023, as well as in the coming years, we can expect more frequent inspections, due to the many changes in the tax regulations, which have been made especially since the beginning of last year. It carries a significant risk of increasing the number of violations in the settlements. Taxpayers have difficulties adjusting to new legal requirements, which can naturally lead to mistakes and errors.

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