International Tax Association in Poland (IFA Polish Branch), Centre for Fiscal Studies of the Nicolaus Copernicus University in Toruń and Collegium of Business Administration of the Warsaw School of Economics
invite you to the scientific conference "Dilemmas and challenges in the field of withholding tax in the context of Poland’s competitiveness as an investment jurisdiction", which will be held on Wednesday, December 11, 2024, from 9.00 a.m. to 4.00 p.m. in hall II in building C of the Warsaw School of Economics (al. Niepodległości 128, 02-554 Warsaw) and online (link: Join the meeting); Identification number: 323 971 205 815; Access code: L9oQ9pE2).
Free admission.
The aim of the conference is to discuss dilemmas in the field of regulations and case law issued based on them.
The provisions regulating deduction of withholding tax have been subject to significant changes. These included, among others, the introduction of payer due diligence requirements and the pay & refund model, which are perceived by entrepreneurs as overly complicated and, consequently, unclear. The case law regarding withholding tax provisions is not uniform.
Significant controversies concern the constitutionality and compliance with European Union law of the provisions on the application of exemptions and reduced withholding tax rates to dividends, interests and royalties.
Doubts are also raised by the law-making interpretation of the prerequisites for the application of the above-mentioned tax preferences including imposing additional requirements for the application of exemptions, which are regulated in the EU PS and IR Directives, reference to the conditions set out in bilateral double tax treaties and documents that are not sources of law, e.g. a commentary to the OECD Model Convention or draft explanations of the Ministry of Finance. Such an approach may be considered contrary to the principle of specificity of public levies expressed in Article 217 of the Constitution of the Republic of Poland and raise doubts as to its compliance with EU law.
There are contradictory positions on the application of Article 22c of the Corporate Income Tax Act regarding the dilemma of whether the addressee of this provision is the tax remitter or the taxpayer. The application of the special anti-abuse clause mentioned in the cited provision may be more severe for the taxpayer (remitter) than the application of the GAAR clause.
The application of the Beneficial Owner concept (treated – without legal basis – as a specific anti-abuse clause) and the look-through approach has not been regulated by law or included in the final explanations of the Ministry of Finance, while there is changing and inconsistent case law on their application, which may lead to unequal treatment of tax remitters and taxpayers. The standards of due diligence and evidence proceedings in this respect have also not been regulated.
The above situation may lead to the perception of Poland as an unattractive investment jurisdiction by Polish and foreign entrepreneurs in terms of stability and quality of tax law. In the case of effective taxation of the repatriation of profits at the level of 38% (19% CIT and 19% WHT) or the payment of interest and royalties with withholding tax at the level of 20%, Poland may lose existing investments and prospects for attracting new investments. Entrepreneurs also have a negative perception of fiscal criminal proceedings in the area of withholding tax.
Disputes in the area of withholding tax may result in MAP and BIT procedures being initiated on the basis of agreements on the promotion and mutual protection of investments by investors from third countries.
The key topic of the conference is to answer the questions of what tax policy and actions Poland can take in order to ensure clear and modern regulations in the area of WHT balancing the interests of tax authorities and remitters/taxpayers.
The conference aims to create a discussion forum for representatives of business, doctrine, tax administration and tax advisors. Among the panelists, the invitation was accepted by representatives of the world of science, business and tax advisors.
9.00 – 9.10: Welcoming guests
Krzysztof Lasiński-Sulecki, PhD, DSc, Associate Professor,
Aleksander Werner, PhD, DSc, Associate Professor and
Michał Nowacki (IFA)
9.10 – 9.20: Opening of the conference:
His Magnificence Professor Piotr Wachowiak, PhD, Warsaw School of Economics. Rector of the Warsaw School of Economics
9.20 – 9.40: Introductory lecture
Wojciech Morawski, PhD, DSc, Associate Professor, “Effects of changing the line of rulings of courts and tax authorities – why should a tax remitter who was not a fortune teller pay for it?”
9.40 – 11.10: PANEL I: Challenges for business in the field of withholding tax
Moderator: Michał Broniewicz, Vice President of the Board, Council of Polish Global Entrepreneurs
Panel discussion:
Participants: Adam Wacławczyk (Deloitte), tax advisor Michał Zdyb, Anna Stępniak (business representative), Rezan Ökten (Dentons NL, lecturer at the University of Amsterdam (UvA)), Michał Nowacki (Wardyński & Partners, IFA) and Izabela Andrzejewska-Czernek (IFA)
11.10 – 11.30: coffee break
11.30 a.m. – 1.15 p.m.: PANEL II: Legal dilemmas in the area of withholding tax
Moderator: Krzysztof Lasiński-Sulecki, PhD, DSc, Associate Professor
11.30 – 12.00 Introductory lecture by dr hab. Błażej Kuźniacki, prof. UŁa, entitled “7 main errors in the interpretation of the Supreme Administrative Court in cases regarding BO – causes and effects”
Panel discussion:
Participants: Jakub Jankowski, PhD (MF, to be confirmed), Filip Majdowski, PhD (EY), Mateusz Raińczuk (Deloitte), Anna Karczewska, tax advisor and member of the Anti-Tax Avoidance Council
13.15 – 13.45: coffee break
13.45 – 15.15: PANEL III: Withholding tax in international regulations, case law of the CJEU and other EU countries – challenges and perspectives
Moderator: Prof. Jadwiga Glumińska – Pawlic (University of Silesia)
13.45 – 14.00 - lecture by Dr. Svitlana Buriak, assistant professor at the University of Amsterdam (UvA), on Danish judgments and other WHT cases
Panel discussion with the participation of: representative of the doctrine, National Revenue Administration, business, tax advisor
Participants:
Dr Giammarco Cottani, Head of Tax, lecturer at UvA, Tomasz Leszczewski (DZP), Dr Mikołaj Kondej (PWC), dr hab. Artur Nowak-Far (Warsaw School of Economics)
15.15: Summary and closing of the conference