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Experts from the Tax Practice have obtained for our client a positive ruling on tax law provisions on the absence of the obligation to carry out a physical inventory and to pay VAT on the company's assets in the event of the heir continuing the activities of the company inherited.
The individual ruling is of a precedential nature as the Director of the National Revenue Administration (NRA) clearly confirmed that paying VAT on inherited business assets would be contrary to the principle of VAT neutrality and the purpose of the regulation introduced.
According to the previous line taken by the tax authorities in rulings, in the event of expiry of a succession board or the right to appoint a succession manager, heirs were obliged to carry out a physical inventory and thus to pay VAT on the goods comprising the enterprise. In the tax authorities’ view, the tax liability arises even when the activities of the inherited business are continued.
In the ruling obtained, the NRA Director broke away from the previous negative line of ruling in this respect. He stated, first of all, that where the business activity is continued by an heir, there is no obligation to carry out a physical inventory and pay VAT on the company's assets.
The NRA Director indicated, inter alia, that the application of Article 14(1)(3) of the VAT Act both with regard to expiry of the succession board and the expiry of the right to appoint a succession manager should be assessed in the context of the neutrality principle. Moreover, an interpretation of the law should not be limited to a grammatical interpretation, but the principle of making a systemic or teleological interpretation should also be taken into account.
After months of a line of ruling that was incorrect and unjust for entrepreneurs and their families, a position was finally obtained that complied with the aims of the Act on Succession Management.
From 25 May 2018 the General Data Protection Regulation (GDPR) applies in Poland and other European Union countries. We would therefore like to give you several details on the subject of how DZP processes personal data.
The administrator of the personal data is Domański Zakrzewski Palinka Sp.k. (“DZP”; address: Rondo ONZ 1, 00-124 Warszawa). Data are processed for contact purposes and to impart information on changes to provisions and authority practices and on other issues, including events concerning day-to-day legal, economic and cultural issues, inter alia, by sending DZP newsletters. The above is carried out on the basis of legitimate interests, i.e. in accordance with art. 6(1)(f) of the GDPR. Data can also be processed where necessary for the conclusion or performance of a contract and for compliance with a legal obligation to which DZP is subject, i.e. pursuant to art. 6(1)(b) and (c) of the GDPR. Data can be transferred to entities with whose help DZP achieves the indicated aims, including entities maintaining IT infrastructure. Giving data is voluntary and in contractual relations is a requirement for concluding and performing a contract. It is possible to object to data processing, request access to, rectification and erasure of personal data or restriction of processing and data portability. Data are kept until an objection is made, and in contractual relations – throughout the term of the contract and thereafter for a period specified in provisions on archiving and limitations period for claims. Anyone has the right to file a complaint with the President of the Personal Data Protection Office. Questions concerning privacy at DZP can be sent to DZP’s Data Protection Inspector, Macieja Maciejewskiego, at: email@example.com.
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