Poland: Individual ruling is not equal to APA (court decision)
Polish Supreme Administrative Court decision
Polish Supreme Administrative Court decision
The Polish Supreme Administrative Court on 11 January 2022 issued a decision that the head of the National Revenue Information Service (NRIS) cannot refuse to issue an individual ruling on whether an entrepreneur may deduct the price paid to a related entity under restructuring proceedings on the basis that the ruling could only be provided via an advance pricing agreement (APA).
The case information is: II FSK 990/19
Summary
The case related to a company applying for an individual ruling on whether the price for the purchase from a related entity of a part of the production, sales and distribution segments was calculated in a correct manner and on the possibility of deducting the purchase price paid. The head of NRIS refused to issue such a ruling, stating that the inquiry did not relate to the possibility of deducting the price paid, but to whether the purchase price was correctly calculated under the contract, and economic analyses of contracts entered into by taxpayers are excluded from the scope of individual rulings and must be provided under an APA.
The Supreme Administrative Court, however, held that the company clearly articulated in its application for the individual ruling that it wanted to know if it could deduct the remuneration and when it was eligible to do so. Consequently, the goal of the application was not to dispel doubts that could be answered only by issuing an APA, and thus the NRIS is obliged to issue the ruling.
Read a January 2022 report prepared by the KPMG member firm in Poland
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