Tax Schemes Reporting Obligation and Proceeding Individual Interpretation of Tax Law

Abstract

The Mandatory Disclosure Rules (MDR) have imposed new obligations on taxpayers, resulting from mandatory implementation of Council Directive (EU) 2018/822 of 25 May 2018, amending Directive 2011/16/EU as regards the mandatory automatic exchange of information in the field of taxation concerning reportable cross-border arrangements – thereby causing many practical and legal difficulties in compliance with a domestic legal order.

The purpose of the article: The evaluation, based on available voivodeship administrative courts ruling – practical solutions of legal protection for taxpayers against damaging consequences of potential tax proceedings resulting from improper application of domestic and EU law.

Hypothesis: The regulations contained in the applicable legal provisions are insufficient for the proper interpretation of tax scheme reporting and require the introduction of comprehensive solutions in the scope of a consistent and transparent system of their application.

Methodology: The authors discuss the scope of institution of individual interpretation of tax law, particularly in the aspect of application admissibility of this procedure as regards the MDR provisions.

Results of the research: It has been found that there is a clearly outlined disagreement over the classification of the tax scheme reporting provisions. When assessing the previous judgments on the admissibility of issuing individual interpretations in cases related to the MDR provisions, one can notice a clear tendency of increasingly more favorable decisions for the complainants. We hope that this direction will be maintained and will lead to the formation of a well-established line of jurisprudence in this regard.