Understanding Board Member Accountability for Tax Arrears

Interpretation of Tax Liability: The Polish Ministry of Finance issued a general interpretation regarding Article 116 of the Tax Ordinance, clarifying the joint and subsidiary liability of company board members for tax arrears, particularly in light of recent European Court of Justice rulings. This interpretation aims to ensure consistent application of tax law by tax authorities.
Rights of Board Members: The interpretation emphasizes that board members have the right to challenge the tax authority’s findings regarding the existence and amount of tax liabilities. They can access relevant case files to defend themselves, but this access is limited to what is necessary for their defense and does not infringe on the company’s confidentiality.
Presumption of Guilt and Bankruptcy Filing: The document outlines that board members are presumed guilty for tax arrears unless they can demonstrate that they timely filed for bankruptcy or that their failure to do so was not due to their fault. This presumption is based on their responsibility to manage the company properly and ensure compliance with tax obligations.