The Use of different Methods of the Tax Base Estimation in the Light of SAC Ruling in 2014
The Use of different Methods of the Tax Base Estimation in the Light of SAC Ruling in 2014

Summary/Abstract: One of the phenomena that can be observed in the economy is tax evasion. It has different forms like unreliable tax evidences. This problem concerns also income taxes.In order to protect the interests of the State Treasury and to ensure fair competition in the economy, measures must be available to prevent the occurrence of such attempts. The effect of unreliable tax evidences is estimation of the tax base. The provisions point out different methods of estimating of the tax base. Polish legislation provides tax authorities with a list of six tax base estimation methods they can use. In cases when none of the semethods is applicable, tax authorities may use other methods serving the same purpose,but the law (the Tax Ordinance Act) does not indicate what these methods should be. The aim of the article is to evaluate the necessity of elaboration other methods of the tax base estimation than those indicated in the Tax Ordinance Act. The analyse of using the methods of estimating of tax base by the tax authorities was given. The scope of the analyse were different cases from the administrative court. The cases concerned different types of methods of tax estimation used by tax administration. In the majority of analysed casesthe other methods than pointed out in the provisions or literature data were used. The implementation of rules concerning other methods of estimating of tax base was proposed.

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