– The draft of amendments to the CIT and PIT Acts proposed by the Ministry of Finance will not contribute to strengthening the competitiveness of Polish companies on the EU market – says expert of Employers of Poland Mariusz Korzeb.
Changes suggested by tax authorities, which were already submitted to the Council of Ministers, are concerned with the taxation of Controlled Foreign Corporations registered abroad. According to the draft, when a foreign company will generate 250 000 euro of income, its Polish mother company will be obliged to pay 19% tax.
Such regulations will not have a positive impact on the activities of Polish entrepreneurs and their competitive position on the international stage. Moreover, they are an infringement against fundamental principles of the freedom of economic activity and freedom of capital flow between countries.
In order to underline the significance of the issue, one can refer to one of the verdicts of the European Tribunal of Justice in the Cadbury Schweppes case. In the verdict, The Tribunal pointed out that establishing a subsidiary in a member state in order to benefit from more favourable tax regulations, is not a sufficient ground in itself for the tax authorities to consider such an action a violation of the freedom of economic activity. Thus, such a situation does not give a member state the right to “compensate’ for this advantage by discriminating against the company which dominates in terms of taxation.
Mariusz Korzeb, expert of Employers of Poland