What is a fiscal offence?
A fiscal offence is a violation of tax, customs, foreign exchange or gambling regulations that is subject to liability under the Polish Fiscal Penal Code. It generally concerns conduct that harms or exposes public revenues to harm, such as tax evasion, failure to submit a required declaration resulting in exposure to tax depletion, providing inaccurate information to tax authorities or persistent failure to pay tax on time.
Polish law distinguishes between fiscal crimes and fiscal petty offences. The classification depends on the statutory definition of the act and, for many offences, on the amount of the public-law receivable affected. A fiscal crime is the more serious category and may result in a fine expressed in daily rates, restriction of liberty or imprisonment. A fiscal petty offence is usually punishable by a fine set as a specific monetary amount.
Fiscal liability may arise not only from intentional conduct. In cases specified by law, a person may also be held liable for unintentional conduct, including failure to exercise the level of diligence expected from someone responsible for tax settlements, accounting records, invoicing or customs documentation. This is particularly relevant for members of management boards, finance directors, chief accountants, proxies and employees entrusted with tax-related duties.
What does a fiscal offence involve?
Fiscal offences may relate to many areas of business and private financial activity. Common examples include failure to disclose taxable income, submitting an inaccurate tax return, understating VAT, using unreliable invoices, failing to issue receipts or invoices, failure to keep accounting books correctly, and non-payment of taxes, customs duties or excise duties where the statutory conditions for liability are met.
In a business context, fiscal liability may concern errors in VAT settlements, withholding tax, transfer pricing documentation, payroll taxes, customs declarations or reporting obligations. It may also arise where a company fails to provide information requested by the tax authorities or obstructs a tax audit. The fact that the relevant activity was carried out through a company does not automatically exclude the personal liability of individuals responsible for its affairs.
Not every tax irregularity constitutes a fiscal offence. A mistake may result from an unclear legal provision, an accounting error or a reasonable interpretation of tax law. However, the circumstances of the case, the scope of the error, the person’s role and the steps taken to correct the irregularity may be important when assessing liability. Tax proceedings and fiscal penal proceedings are separate, although their findings may influence one another.
When is it worth seeking assistance from a lawyer?
Legal assistance may be needed as soon as a taxpayer identifies an error in a tax return, receives a request for explanations, is notified of a tax audit or learns that fiscal penal proceedings may be initiated. Early legal analysis can help determine whether a correction should be filed, whether the authorities have correctly identified the responsible person and whether the circumstances support a defence against liability.
For private individuals, legal support may be relevant in cases involving undeclared income, incorrect personal income tax settlements, inheritance-related tax issues, customs matters or business activity conducted as a sole proprietorship. Entrepreneurs may need assistance when an irregularity concerns company accounting, VAT invoices, tax declarations, employee settlements, customs procedures or the actions of persons handling financial documentation.
A prompt consultation with a lawyer may help avoid procedural mistakes, limit the risk of personal liability and reduce the likelihood of disputes with tax authorities. In appropriate circumstances, Polish fiscal penal law provides mechanisms that may allow a person to disclose an irregularity and remedy its consequences before the authorities have documented knowledge of the offence or have commenced official action in relation to it. Whether such a step is possible and effective depends on the facts of the case and should be assessed individually.
Legal support in fiscal offence matters
Fiscal offence cases often require coordinated analysis of criminal, tax and corporate issues. It is important to establish the factual background, review the documentation, identify the persons responsible for particular duties and assess the procedural stage of the matter. A properly prepared response may be relevant both during preliminary actions by the authorities and in formal fiscal penal proceedings.
Support from a law firm in matters concerning fiscal offences may include in particular:
- assessment of the risk of fiscal penal liability;
- review of tax, accounting, customs and corporate documentation;
- advice on correcting declarations and addressing identified irregularities;
- representation during a tax audit and fiscal penal proceedings;
- assistance for management board members, accountants and other responsible persons;
- preparation of explanations, procedural submissions and defence strategy;
- analysis of options for voluntary submission to liability or other voluntary resolution of a case where permitted by law.
Need legal assistance with a fiscal offence? Contact us.