- Tax Audit Statistics for 2024: In 2024, Poland saw a decrease in the number of tax audits, with 9,829 completed compared to 13,023 in 2023. Although customs and fiscal audits also declined slightly, the total number of verification activities surged to 2,393,739, indicating a shift towards less formalized checks by tax authorities to verify the correctness of tax settlements.
- Focus Areas of Tax Authorities: The primary focus of tax audits remains on VAT, particularly concerning carousel frauds, as well as increased scrutiny on withholding tax (WHT) settlements, especially for large entities. Authorities are actively using international information exchange to validate WHT settlements and are also paying attention to transfer pricing documentation to ensure compliance.
- Strategies to Minimize Audit Risks: Businesses are encouraged to adopt measures such as enrolling in the Cooperative Compliance Programme for those with revenues over €50 million, seeking opinions on tax exemptions, obtaining Advance Pricing Agreements for transfer pricing, and pursuing individual rulings to protect against adverse tax outcomes. Regular tax reviews and due diligence procedures are also recommended to enhance compliance and reduce the likelihood of audits.
Source RSM
