The Use of Different Methods of the Tax Base Estimation in Income Taxes in the Light of SAC Rulings in 2017 in Poland
The Use of Different Methods of the Tax Base Estimation in Income Taxes in the Light of SAC Rulings in 2017 in Poland

Author(s): Radosław Witczak
Subject(s): Economic policy, Government/Political systems, Public Finances, Fiscal Politics / Budgeting
Published by: Masarykova univerzita nakladatelství
Keywords: taxation; tax fraud; income taxes; the estimation of tax base; tax collection;
Summary/Abstract: Important issue for public finance is tax evasion. 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. One way to combat tax evasion is estimation of the tax base. The Polish legislation points out different methods of the tax base estimation. The provisions provide tax authorities with a list of six tax base estimation methods they can use. However, 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 indicate methods of the tax base estimation used by the tax administration in the light of SAC rulings in 2017. 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 the tax administration. In all analysed cases the other methods than pointed out in the provisions were used. The implementation of rules concerning other methods of estimating of tax base was proposed.

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