Collaboration Agreement - What Should You Know?

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The cooperation agreement is to encourage the largest enterprises to cooperate more closely with the Head of KAS. If you want to know the details of this new procedure in tax law - read the article below!

Cooperation agreement - basic information

The head of the National Revenue Administration may conclude an agreement with the taxpayer, at his request, for cooperation in the field of taxes remaining within the competence of the National Revenue Administration.

The cooperation agreement is intended to ensure that the taxpayer complies with the provisions of tax law in the conditions of transparency of actions taken and mutual trust and understanding between the tax authority and the taxpayer, taking into account the nature of the taxpayer's business.

An application for the conclusion of a cooperation agreement may be submitted by a taxpayer whose value of income indicated in the tax return in the previous tax year exceeded the equivalent of EUR 50,000,000 converted into PLN according to the average EUR exchange rate announced by the National Bank of Poland on the last working day of the calendar year preceding the year of submitting the application . In the event of a refusal to conclude a cooperation agreement, the Head of the National Revenue Administration shall indicate its reasons and justification.

A cooperation agreement may be concluded with a taxpayer who received a positive opinion from the pre-audit.

Tax audit is carried out by the Head of KAS towards the taxpayer before the conclusion of the cooperation agreement (pre-audit) and during its term (monitoring audit) in order to check:

  • the correctness of the fulfillment of tax obligations;
  • the effectiveness and adequacy of the internal tax oversight framework.

Rules for concluding a cooperation agreement

The cooperation agreement is concluded in writing for an indefinite period.It contains the parties' arrangements necessary for the proper implementation of the terms of the contract, including a detailed definition of the rights and obligations of the parties under the concluded contract and the manner of informing about the persons authorized to contact between the parties.

The legal successor of the taxpayer does not enter into the rights and obligations arising from the cooperation agreement.

Obligations of taxpayers concluding a cooperation agreement

A taxpayer who has concluded a cooperation agreement is obliged to:

  • voluntary and proper performance of obligations resulting from the provisions of tax law;
  • having an effective and adequate set of identified and described processes and procedures for managing the performance of obligations under tax law and ensuring their proper performance (internal tax supervision framework);
  • reporting to the Head of KAS, without being summoned, significant tax issues which, judiciously judging, may become a source of dispute between the taxpayer and the tax authority, in accordance with the materiality thresholds specified in the cooperation agreement;
  • immediately provide the Head of KAS, without being summoned, with relevant information that may affect the taxpayer's obtaining a tax advantage, in accordance with the materiality thresholds specified in the cooperation agreement.

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Competences of the Head of KAS in relation to the cooperation agreement

In the scope covered by the cooperation agreement, the Head of KAS:

  • adjusts the form and frequency of activities verifying the correctness of the taxpayer's performance of obligations under the tax law to the current level of effectiveness and adequacy of the internal tax supervision framework and the existing cooperation with tax authorities;
  • carries out a customs and tax inspection of the taxpayer;
  • consents to the undertaking of checking activities against the taxpayer by other KAS authorities and to apply to the taxpayer pursuant to art. 79 of the Act of November 16, 2016 on the National Revenue Administration.

Termination of the cooperation agreement

The taxpayer may terminate the cooperation agreement at any time.

The head of KAS may terminate the cooperation agreement:

  • in the event of a breach by the taxpayer of the provisions of this agreement;
  • in the event of a serious or repeated breach of tax law by the taxpayer;
  • indicating the reasons for its termination with justification.

The termination of the cooperation agreement takes place on the day of submitting, in writing, the termination of the agreement to the other party, unless its content indicates a later date. In the event of termination of the cooperation agreement, the taxpayer's data is immediately removed from the records.

Within 2 years from the date of termination of the cooperation agreement by the Head of the National Revenue Administration due to the taxpayer's breach of the law or the cooperation agreement - this taxpayer may not submit an application for the conclusion of another cooperation agreement.

On the date of termination of the cooperation agreement, the Head of the National Revenue Administration may terminate the tax agreement concluded on the basis of the cooperation agreement.

Taxpayer records

The head of the National Revenue Administration keeps a register of taxpayers with whom he has concluded a cooperation agreement.

The records include:

  • name and tax identification number of the taxpayer with whom the cooperation agreement was concluded;
  • the commencement date of the cooperation agreement.

The records are open to the public and made available in the Public Information Bulletin on the website of the office servicing the minister responsible for public finances.