Double interest on advance income tax
Currently, interest on tax arrears related to income tax advances is charged only when the entrepreneur is obliged to pay the advance for the period and it has not been settled in a timely manner. This sequence of things results from Art. 53 § 2 of the Tax Code, which says that:
Interest is also added to the receivables referred to in article 1. 52 § 1, and to unpaid tax advances, in part exceeding the amount of tax due for the tax year.
As is generally known, the Ministry of Finance is preparing many changes, including one of the most important legal acts, the Tax Ordinance Act. Among the most important, we can mention the change of regulations in the field of liability for tax liabilities. The buyer will be responsible only for the supplier's tax arrears. The scope of this liability will not include interest for late payment on these arrears and enforcement costs related to their enforcement. It will also not be possible to rule on the buyer's tax liability if three years have elapsed from the date of delivery of the goods, counting from the end of the year in which the delivery took place.
Another change, extremely important from the taxpayers' point of view, concerns precisely the interest on tax arrears related to advance payments for income tax. As it results from the imprecise provisions of the Ordinance, it will be possible to double count them - on advances and on the annual obligation, which the taxpayer has not paid in a given year.