What is an individual interpretation?
An individual interpretation is a written position of a tax authority regarding the application of tax law in relation to economic events. A request for an individual interpretation may concern the actual state of affairs or future events.
The subject matter of a request for individual interpretation cannot be the provisions of tax law, governing jurisdiction, rights and duties of tax authorities, aimed at preventing tax avoidance, referring to the abuse of tax law provisions, conduct of an actual business activity or taking actions in an artificial way or without economic justification
An applicant requesting an individual interpretation shall present the actual state of affairs or future event in full, and present his own opinion concerning the legal interpretation of the actual state of affairs or future event.
The submitter of a request for an individual interpretation shall submit a declaration, on pain of criminal liability for making a false statement, to the effect that the elements of the factual circumstances covered by the request for an individual interpretation, as at the date of the submission of that request, are not the subject of any tax proceedings, any tax inspection, or any customs and tax inspection being underway and that in this respect, the case has not been settled with regard to its substance in the decision or resolution of the given tax authority. Should a false declaration be made, the individual interpretation issued shall have no legal effects.
No individual interpretation shall be issued in respect of those elements of the factual circumstances or a future event which, as at the date of submission of a given request for interpretation, are subject to any pending tax proceedings, tax inspection or customs and tax inspection or if in this respect the case has been settled with regard to its substance by means of a decision or resolution of tax authority or agreed in a tax arrangement
If the factual state or future event presented in the request corresponds to an issue that is the subject of a general interpretation released under the same legal conditions, a decision is issued to ascertain that the factual state or the future event described in the request are governed by the general interpretation, while at the same time the request shall be deemed groundless. In this case, the decision shall indicate the general interpretation reference and its place of publication. The decision may be contested.
Obtaining a positive interpretation (confirming the position presented by the taxpayer) generally provides protection to the taxpayer in the scope of application of tax law provisions and influences the analysis and making of specific business decisions.
A request to issue an individual opinion is subject to a duty of 40 PLN, payable within 7 days from the submission of a request. If an applicant requests an individual interpretation of separate states of affairs or future events in the same request, the duty is charged on each separate state of affairs or future event presented in the request.
Application of an individual interpretation before it is amended, declared expired, or before serving on the tax authority a copy of the final ruling of an administrative court repealing the individual interpretation may not cause harm to the requesting entity, also in the case when the individual interpretation is not taken into account in the settlement of a tax case.
To the extent an interpretation amended, declared expired, or not taken into account in the settlement of a tax case has been applied, proceedings in matters of fiscal offence shall not be commenced, and if already commenced – shall be discontinued without assessing default interest.
Our services
As an experienced team of tax advisors, tax experts and lawyers who deal with GAAR, we can help you in the following matters:
- preparation of the application and full support in issuing an individual interpretation,
- representation in proceedings before public administration bodies and administrative courts.
- tax advice on applying for an interpretation,
- applications for issuing binding VAT rate interpretations (WIS), binding tariff interpretations (WIT) and excise tax interpretations (WIA).