Right to error for any new company from 2020!

Co-Size-Changing

When running a business, it is easy to make a mistake, especially when tax regulations are changed at a frantic pace. The Ministry of Finance met entrepreneurs and created a new right - the right to make mistakes - for newly established companies. What is the new permission and who does it apply to? Check!

Right to Error - Who Can Benefit?

The right to error will be available to companies that simultaneously meet the following two conditions:

  • are entered in CEIDG - sole proprietorship and activities conducted as part of a civil law partnership,

  • no more than 12 months have passed from the moment of starting the activity.

It should be emphasized that the right to error also applies to activities that the taxpayer previously closed or suspended, if at least 36 months have passed since the last suspension or termination of the activity.

What is the advantage of the right to error?

If the company meets the above-mentioned conditions and thus is subject to the right to error, but violates the regulations related to its business, the tax authority competent for the taxpayer, before imposing a fine (by way of a penalty notice) or before imposing an administrative fine, will call the taxpayer to remove the identified violations of the regulations and remove the effects of these violations (if any). If the entrepreneur removes the infringement and its consequences within the time limit set by the authority, he will not:

  • be subject to a penalty for a committed offense or a fiscal offense, or the competent authority, by way of a decision, shall refrain from imposing on him or imposing on him an administrative fine and stopping at the instruction.

It should be emphasized that if the entrepreneur, without calling the tax authority or submitting an obligation:

  • he will stop violating the regulations himself,

  • will remove the consequences of their violation,

  • notifies the relevant authority,

then the tax authority will also refrain from punishing the entrepreneur and stop at the instruction.

For more on this, see the article: Right to Make a Mistake - When Can You Apply?