Making a voluntary disclosure to avoid potential criminal liability and prosecution

According to the provisions of the Polish penal fiscal Code, in certain situations a taxpayer can avoid criminal consequences related to violation of tax legislation. However, it requires: voluntary disclosure, submission of the amended tax return, voluntary surrender of responsibility or renouncement of inflicting a penalty or imposition of a penalty.

If the offender after committing an  offence reported to the proper prosecuting body, describing the essential circumstances of it, in accordance with the penal fiscal Code is not subject to the penalty of fine for a fiscal transgression or crime. However, the application of such procedure is possible only if the full levies of public law nature (for example, taxes) offset by the committed offence is paid within the period established by the authorized body.

 If the payment of the full debt is not possible, and the decision to  seizure the items is mandatory, the taxpayer must hand over the items, and if it is impossible  it is necessary to pay their cash equivalent. When seizure applies to items production, storage, circulation or transfer of which is forbidden, it is not imposed obligation to pay their equivalent in money.

In the event that complex items subject to penalties can be quickly destroyed or damaged, their storage has been associated with higher prices or excessive difficulties or will cause a significant reduction in their value, the  investigating authorities imposes on the offender the obligation to pay their monetary equivalent, unless the confiscation concerns items production, storage, circulation, transportation, movement or transfer of which is prohibited.

Notice of voluntary disclosure must be given in writing or orally verbally to the minutes.

In accordance with article 16 § 5 of the Polish penal fiscal Code, a notice of voluntary disclosure is void if it was submitted:

• at a time when a law-enforcement agency has documentation reporting a fiscal crime or transgression;
• before the discharge duties by of the law-enforcement agency, in particular searches, inspections or inspections aimed at the disclosure of a tax crime or tax offence, unless this action has provided grounds for commencement of the procedure.

In addition, article 16 § 6 of the penal fiscal Code provides that the refusal of penalties within the framework of voluntary disclosure may not be used against the offence who:

• managed the implementation of the entire prohibited act;
• used the dependence of another person on himself, entrusted her/him with the implementation of all acts prohibited;
• organized a group aimed at committing a fiscal crime or transgression or managed such a group, if the notification with a voluntary disclosure has not been submitted with the law enforcement agency by all members of the group;
• encourages others to commit a tax offence or tax offence in order to direct against them a proceedings of this prohibited act.