Standard Audit File for Tax introduction

Transcription

1 Standard Audit File for Tax introduction

2 Standard Audit File for Tax: What s next? On the 1st of July 2016 important changes for entrepreneurs in Tax Ordinance Act will enter into force. Taxpayers will be obliged to transfer data on demand of the tax authorities in the electronic form compliant with a specified logical structure Standard Audit File for Tax (SAFT).

3 Standard Audit File for Tax: Basic information Standard Audit File for Tax is a logical structure enabling taxpayers to transfer accounting books and documents (either in part or in principle) in electronic form on demand of the tax authorities. The demand shall in principle concern closed periods. Data will be transferred either by electronic means of communication or IT storage media. The data file is technically a file in the.xml format (based on international OECD standard SAFT 2.0). SAFT is already being used in several EU countries (such as the Netherlands, Portugal, Austria, Slovenia, Estonia or Luxembourg). The logical structure has been published in Ministry s of Finance Bulletin of Public Information:

4 Standard Audit File for Tax: justification of changes Reduction of the costs of fulfilling tax obligations Simplification for internal and external auditors Reduction of the costs of the tax administration Significant level of automation Access to data in a format enabling automatic analysis Less printing Effective means against tax frauds (VAT extortion, carousel fraud ) More efficient control

5 Standard Audit File for Tax: Whom it may concern? The obligation to transfer the data in the form of SAFT on demand of the tax authorities concerns: A Using SAFT is voluntary for group B B 1st of July st of July 2018 employment level 250 or annual turnover > 50 million and assets > 43 milion employment level < 250 and annual turnover 50 million or assets 43 million

6 Standard Audit File for Tax: Reporting structures VAT invoices Bank statements Accounting books Tax revenue and expense ledger For taxpayers using the tax revenues and expenses ledger Record of revenue Warehouse VAT evidence For taxpayers using the method of tax on registered income without deductible costs

7 Standard Audit File for Tax: Problematic data VAT evidence Accounting books VAT invoices Document numbers; VAT invoices receipt date; Value of purchases not subjected to VAT Correcting invoice and documents equated to Fields: invoices; DateOfOperation and DateOfProof; Intra-community delivery of goods records of the data Difference between DescriptionOfOperation and DescriptionOfRowOwes and DescriptionOfRowPossess referring to vehicle s mileage and amount of new vehicle s working hours

8 Standard Audit File for Tax: Application on demand of the tax authorities during the tax audit during tax proceedings During audit activities, including audit activities concerning the business partners of a taxpayer

9 Standard Audit File for Tax: Practical problems Simoultanous usage of several systems supporting the process of management eg. storage, accounting, invoice systems Lack of comprehensive IT solutions, that leads to adjusting the software individually/ possibly creating a new comprehensive system Using a system dedicated to a company and a need of adjusting the modules already implemented, introducing extra information into the system Organizational changes in the company / preparing corresponding departments to new model of recording of economic events

10 Standard Audit File for Tax: Possible sanctions (1/2) Fine up to PLN 2,800 (2016) For either baseless refusal to present or belated presentation of the documents, that must be held according to provisions of law, tax books, accounting documents, which are a basis for entries in these documents Legal basis: art Tax Ordinance Act Liable: taxpayer (statutory representative, member of a body entitled to representation, person authorized to carry business of a taxpayer), proxy of a party

11 Standard Audit File for Tax: Possible sanctions (2/2) Fine up to 720 daily rates (up to PLN 17,760,000.00) for confounding or hindrance of official actions, especially not presenting the tax books or other document concerning business or destroying, damaging, making useless, hiding or deleting the tax book or other document. Legal basis: Art. 83 Tax Penal Code; Liable: everyone intentional behaviour

12 Standard Audit File for Tax: Possible risks Automatic verification of presented data enabling efficient and effective identification of possible irregularities in taxpayers s activities Easier analysis of information on taxpayers and their business partners during counterchecks (verification of VAT deduction, VAT compliance and data on invoices) Efficient detection of irregularities, which would not be possible with former standards within time-bounded control increased risk of sanctions Sharing considerable amounts of data concerning transactions with business partners (data concerning market conditions, margins) risk of breaching the competition law Unauthorized access to data / no possibility to filter information in SAFT

13 Standard Audit File for Tax: How to prepare for changes? Mapping the processes in the company identification of areas in need of changes 1 2 Internal organizational adjustments in the company Formulating a tool integrating data (XML) 3 4 Introducing new functionalities to accounting systems and implementing modified software Testing of the new software 5 6 Simulation of an e-control on the basis of provided data verification of correctness and coherence of the system

14 Standard Audit File for Tax: O&W s Experts (1/2) To fully answer the doubts of our Clients, our experts have been participating in meetings with specialists IT Finances Accounting in cooperation with whom we analyse and identify possible areas of risk / problems connected with SAFT.

15 Standard Audit File for Tax: O&W s Experts (2/2) Areas of our consulting Audit of systems used in order to implement SAFT (update and practical recommendations) Simulated e-control on the basis of data provided in real operational acitivity Advising in doubts connected with SAFT (range of data, possible risks and sanctions) Tomasz Gałka tax advisor partner in O&W Corporate coaching dedicated to the employees (accounting, finances) Security and data protection Support in the organizational changes process Support in the implementation process / update of systems in cooperation with IT specialists Wojciech Fryze attorney-at-law manager in O&W Assistance and advising during a tax control, audit activities, tax proceedings

16 Standard Audit File for Tax in SAP: O&W and SI-Consulting Cooperation in implementing the Standard Audit File for Tax Experts of our Law Firm and SI-Consulting cooperate in comprehensive implementation of Standard Audit File for Tax in SAP systems Do not hesitate to contact us!

17 Arkady Wrocławskie ul. Powstańców Śląskich Wrocław Tel. (+48 71) Fax (+48 71) Prosta Tower ul. Prosta Warszawa Tel. (+48 22) M65 Meduza ul. Mogilska Kraków Tel. (+48 12) Fax (+48 12) Śląsk (Gliwice) ul. Zygmunta Starego 24A Gliwice Tel. (+48 32) olesinski.com This presentation does not constitute a legal or tax advice. The Law Firm is not liable for using the information herein contained without previous consultation with the Law Firm.