Recently, tax authorities have been increasingly thorough in examining the right to apply the IP Box tax relief. What exactly does an IP Box audit involve? Should you be concerned about tax inspections? Is there a risk that you won’t receive the refund from this relief? Recently, an article containing a comment by Piotr Sekulski, PhD on this topic was published in Prawo.pl.
The Essence of the Relief
We’ve previously written about the IP Box relief and the conditions for its application. We recommend checking out our earlier post:
Additionally, we’ve already discussed how to safely implement this relief. We recommend reading our post here:
IP Box Audit
In recent times, tax authorities have been increasingly scrutinizing the right to use the IP Box relief. What does an IP Box audit entail? The article mentioned in the title is available at this link.
tax advisor Piotr Sekulski, PhD
– If the IP Box relief has been implemented correctly, taxpayers have no reason to worry. However, it’s important to understand that these audits could result not only in questioning the correct application of the relief but also in disputing the B2B contract between a programmer and their client. The tax authority might argue that the programmer doesn’t actually meet the business activity criteria outlined in the PIT Act, meaning they are not entitled to the IP Box. Such cases do occur in practice (…).
tax advisor Piotr Sekulski, PhD
– The issue isn’t in the regulations themselves, but in how they are verified. It’s unrealistic to expect that the requirement announced by the Ministry of Finance to employ three people will lead to entrepreneurs conducting research and development activities. Adding a hiring condition won’t increase innovation. If the Ministry of Finance believes there’s abuse, perhaps shifting the focus of audits to other aspects would be a solution. These checks heavily rely on taxpayer documents and declarations, but as the minister’s words suggest, what’s really needed is a verification of whether the taxpayer’s activity meets the requirements of R&D. This way, those who genuinely meet the conditions for the relief would be safer, while others would think twice before applying it. Furthermore, there would be fewer irregularities if the National Tax Information Office provided clear answers from the start in its rulings on whether a particular activity qualifies as R&D (…).
How can we help?
We support our clients (individuals) by verifying their eligibility for the IP Box relief. A key element is analyzing the contract and the actual work performed. During consultations, we also ensure the highest possible level of security for taxpayers.
If you have questions about how an IP Box audit works or how to safely implement this solution, visit us at www.outsourced.pl .
