Author: kancelaria

Poland is consistently solidifying its position on the global map of business services sector investments. Stable economic foundations, access to qualified specialists, and a well-developed system of financial and tax incentives mean that the country enjoys unwavering investor interest. These conclusions come from the latest “Delivered from Poland” report (visit the report page and download a free copy), which was prepared by experts from ALTO, JLL Poland, Hays Poland, and the Polish Investment and Trade Agency.

In 2025, Poland maintains its status as one of the major economic powers in the European Union, ranking sixth in terms of size, just behind Germany, Italy, France, Spain, and the Netherlands. On the 21st anniversary of joining EU structures, the latest analyses indicate that GDP per capita is currently 40% higher than it would have been without membership in the Community. The scale of economic transformation since 2004 is best illustrated by the fact that Polish GDP has tripled over the past two decades. Active participation in EU economic and social structures continuously strengthens Poland’s position in Europe and globally, cementing its role as a leader in the Central and Eastern European region. In recent years, the Polish economy has been developing at a stable pace, and the country’s key assets include well-educated workers, a mature and innovative economy with a high degree of digitalization, and a favorable system of investment incentives.

“Macroeconomic benefits, the country’s political position, and stability are key factors in making investment decisions. However, ultimately it is people who determine the success of a given venture. Polish specialists are known for their excellent language skills, adaptability to new technologies, and innovative thinking. Years of close cooperation with Western companies have allowed them to deeply understand international business practices and management standards,” says Radosław Pituch, Manager in the Investment Department, PAIH.

 

Inflation Under Control and Stable Labor Market

Recent years have brought significant change in consumer price dynamics. After a period of high inflation in 2022, reaching 17-18% caused by the war in Ukraine and turbulence in the energy market, in 2023 this indicator fell from 16% in January to 6% in December. 2024 brought further stabilization at 3.5-4.5%, approaching the NBP inflation target. In July 2025, the situation remains stable, which for investors is a signal of predictability. Poland also maintains a relatively low unemployment rate, which in the first four months of 2025 ranged from 5.4% to 5.2%. The availability of highly qualified personnel remains one of the main magnets for foreign investors, and the labor market is additionally strengthened by an influx of nearly one million foreign workers, mainly from Ukraine, Belarus, and Central Asia. A key investment advantage of Poland in the business services sector is the wide pool of diverse talents. As the most populous country in the CEE region and fifth in the EU, Poland offers a significant demographic advantage. Approximately 35% of the population has higher education, and 63% of Poles are of working age. About 1.2 million students study in the country, with 25% in engineering fields. Poland also ranks high in the EU in terms of the number of STEM graduates and is a leader in terms of the share of women in these fields.

“Investors who have trusted Poland and opened their shared service centers here often decide to expand their operations, for example by adding production facilities or R&D centers. Increasingly, they are also transferring positions with international responsibility to Polish centers. Although the number of job offers for less experienced workers in the local business services sector is declining, demand for experts continues to grow. These factors perfectly illustrate the ongoing evolution of Poland’s image – from a market competing for investors with low costs to a strategic location for advanced and highly specialized projects,” says Łukasz Grzeszczyk, Executive Director CEE, Investors Consulting & Talent Location Strategy, Hays Poland.

 

Urban Centers as Drivers of Expansion

The dynamic development of the business services sector has become permanently embedded in the country’s economic landscape. According to ABSL data, 55 new centers were established in 2024, and in the first quarter of 2025, another 6 opened, creating approximately 5,400 new jobs. Although Warsaw and Krakow remain the most mature locations, the sector is also thriving in other agglomerations, each with unique investment advantages.

 

Polish Business Services Sector in Numbers:

• Over 2,000 BPO, SSC/GBS, IT, and R&D business service centers operating throughout the country in 2025 (over 1,800 in 2024)
• $42.3 billion in knowledge-based business services export value in 2024 ($36.8 billion in 2023)
• Employment in the sector – over 480,000 jobs
• The sector’s estimated share of Poland’s GDP in 2025 will be 5.7% (5.3% in 2024)
• 61 business service centers began operations from the beginning of 2024 to the end of Q1 2025
• Nine locations where business service centers operate employ over 10,000 people
• Two cities where employment in this sector exceeds 100,000 people: Warsaw and Krakow
• 19.6% – share of foreigners employed in the sector
• 58.6% – share of work requiring high levels of knowledge in sector centers at the end of Q1 2024

 

The Role of Investment Incentives

The system of investment incentives plays an increasingly important role in decision-making processes regarding the location of new projects, allowing for significant reduction of initial costs and supporting long-term profitability.

“Only a small percentage of investors fully utilize the available opportunities to support their investment plans. This results from a combination of factors: first, lack of comprehensive information about available incentives; second, the complexity of application procedures; and third, time constraints rarely aligned with investment timelines. However, it should be emphasized that failure to use investment incentives can directly affect companies’ competitiveness and their development dynamics. In this context, the Polish incentive system is considered relatively attractive for several reasons. The level of permissible state aid in Poland is among the highest in European Union countries. For example, large enterprises can count on support reaching up to 50% of eligible investment costs. Moreover, the Polish incentive system offers various instruments, so every investor can find the most suitable form of support. Importantly, companies can also count on clear application procedures and institutional support,” comments Iwona Chojnowska-Haponik, Business Location Consulting Director, JLL.

One of the most frequently used instruments is the R&D tax relief, with Poland offering some of the most competitive incentives for R&D activities among OECD countries.

“The development of highly competitive tax incentives combined with rapidly developing electronic administration demonstrates Poland’s commitment to creating an investor-friendly business environment. Companies from the BSS sector find in our country not only a cost-effective operational base but also an increasingly predictable and cooperation-friendly tax system. A key role is played by the dynamically advancing digitalization of settlements, a flagship example of which is the currently implemented National e-Invoice System,” states Tobiasz Dolny, tax advisor and partner at ALTO.

 

Transformation in the Office Market

The last decade in the Polish office real estate market has been marked by dynamic growth, driven by the influx of international corporations. Between 2015 and 2025, total office resources in the country grew from 7.1 million sqm to over 13 million sqm. Regional cities particularly benefited from this, where the business services sector now accounts for over 60% of demand. Recent years, however, have brought a significant change in how office space is used. The introduction of hybrid work models has prompted many tenants to transform their workspaces. There is a strong emphasis on space optimization and adapting it to new needs. As a result, the number of lease extensions has increased, and with limited new demand and high vacancy rates in some cities, developers are holding back on new projects. This in turn leads to growing competition for the highest quality offices in the best locations, especially in Warsaw and Krakow.

“Due to lower supply of new office developments over the next 2-3 years and concentration of available space in less attractive buildings and locations, competition for the best offices will continue to intensify. Companies must carefully define their expectations for the space they seek and actively search for it. The most sought-after will be projects located in central business districts, buildings with high ESG standards and environmental certifications, as well as ‘destination workplaces’ that can help attract and retain top talent,” says Karol Patynowski, Head of Regional Markets Office Leasing, JLL.

Although we’ve just recently announced the addition of a new business line to ALTO – ALTO Broker – this isn’t the end of our important news. Today, we’re sharing another significant announcement. We are delighted to announce that Joanna Malinowska has joined our team as Managing Partner. In her new role, she will be responsible for setting and executing the company’s development strategy, building and developing the operational and sales team, expanding our brokerage offerings, and acquiring new clients.

 

What does she say about her new role?

“I decided to join ALTO Broker because it’s not just another broker on the market. It’s part of an organization that focuses on comprehensive business advisory services. Until now, the ALTO group was missing an element of external client protection for situations none of us want to think about, but when they occur, we want to be certain that our advisor has properly assessed the risk, and all we need to remember is where we keep their phone number,” comments Joanna Malinowska, Managing Partner.

She adds, “ALTO Broker has access to a wide range of advisory services within the group. At our fingertips are tax advisors, accountants, ESG experts, and many other specialists. There’s no other organization on the market that provides such multidimensional protection of client interests. That’s why I’m thrilled to be co-creating such a fantastic, reliable business environment – based on trust, knowledge, and real support for clients in making safe decisions.“

 

Extensive experience and technology background

Joanna gained her experience as an insurance and reinsurance broker at several companies, including three of the largest brokers in Poland. She also has rich experience in international cooperation, including conducting negotiations at Lloyd’s of London – the oldest and most prestigious insurance market in the world.

For the past nearly seven years, she managed the Polish operations of a Danish SaaS technology company for the insurance industry. There she gained not only experience in modern, international customer service standards but also first-hand knowledge of the challenges and risks that technology companies face in Europe.

In her work, she prioritizes service quality and tailoring insurance coverage to individual client needs, focusing on a boutique approach and bespoke programs. Moreover, thanks to her extensive international experience, she can prepare insurance offers in areas not available on the Polish market.

 

Long-standing relationships

Importantly, Joanna’s joining the team previously led by Paweł Stasiaczyk is not a coincidence, as their professional paths have crossed before.

“Joanna and I met at our first job at a brokerage 15 years ago. Since then, each of us has followed our own path, gaining experience in different market segments and facing different operational and strategic challenges. Today we’re returning to collaboration with a much broader perspective and complementary competencies that will directly translate into ALTO Broker’s offering. I’m extremely pleased that we can join forces again – this is a good moment to raise the bar on quality, accelerate our development pace, and strengthen our effectiveness in delivering solutions that genuinely increase our clients’ business security,” comments Paweł Stasiaczyk, Director of Property and Liability Insurance Practice.

We believe that incorporating new leadership into ALTO Broker strengthens the entire ALTO Group’s ability to scale services and respond more quickly to market needs in a 360° advisory model. The expansion of brokerage competencies represents a cohesive element in implementing our long-term growth strategy, aimed at creating lasting value for our clients.

The results of the ITR World Tax and ITR World TP 2026 rankings have just been announced, marking a year of breakthrough achievements and remarkable growth for ALTO.

For the first time in our history, ALTO has been recognized as a Recommended Firm 2026 – an important milestone confirming the top quality of our advisory services and the steady strengthening of our market position. We are also proud to have received the 5+ Years Ranked badge, underscoring our stable and well-established presence in the international tax advisory arena.

This year once again brought distinctions in three key categories:

• Transfer Pricing
• General Corporate Tax
• Tax Controversy

 

Notably, our Transfer Pricing team climbed one tier versus last year and is now ranked in Tier 2 – an outstanding success.

 

The ITR World Tax 2026 ranking also recognized the individual expertise of our advisors – seven ALTO experts were distinguished across General Corporate Tax and Tax Controversy, and two Partners received the “Women in Tax Leader” title for the first time.

• Sylwia Kulczycka (Managing Partner & Tax Advisor) – Highly Regarded; Women in Tax Leader; General Corporate Tax
• Aleksandra Bońkowska (Partner & Tax Advisor) – Notable Practitioner; Women in Tax Leader; General Corporate Tax
• Karolina Mazurkiewicz‑Grzybowska (Partner & Tax Advisor) – Rising Star; Women in Tax Leader; General Corporate Tax
• Daniel Banach (Partner & Tax Advisor) – Notable Practitioner; General Corporate Tax (first time ranked)
• Tobiasz Dolny (Partner & Tax Advisor) – Notable Practitioner; General Corporate Tax (first time ranked)
• Dominik Niewadzi (Partner & Tax Advisor) – Rising Star; Tax Controversy
• Łukasz Kalisz (Senior Manager, Tax Advisor, Advocate) – Rising Star; General Corporate Tax

 

This is our best result ever in the ITR ranking.

Congratulations to all our tax teams – and to each recognized expert – for this exceptional achievement. This qualitative leap reflects your hard work, commitment, and passion. Moments like this inspire us to aim even higher and set new ambitious goals. Wishing everyone continued success and more exciting projects to deliver ALTOgether.

And to our Clients – thank you for your trust and partnership; it’s thanks to you that we can continue to grow.

At ALTO, we remain focused on delivering real value to our clients. That is why we continuously expand our offering in response to evolving business needs and market dynamics. This approach allows us to reinforce our established strengths, while building new areas of expertise.

We are pleased to announce that the company previously operating under the name PROTECTO is officially joining the ALTO Group under the ALTO BROKER brand.

 

A Natural Path of Cooperation

The formal integration of ALTO BROKER into the ALTO Group marks a natural step in our growth journey. Since its inception, PROTECTO has closely cooperated with ALTO, supporting our clients in managing risks with carefully tailored insurance solutions. The inclusion of brokerage services into the ALTO portfolio represents the next stage of our mission to offer comprehensive business advisory support.

 

Specialized Insurance Brokerage Services

ALTO BROKER has been active for over two years, specializing in corporate insurance solutions. The practice focuses in particular on Directors & Officers liability (D&O), tax liability, professional civil liability, and Cyber insurance. Among its clients there are financial institutions, law firms, project companies, technology enterprises, and manufacturers.

We know that in today’s dynamic environment, effective risk management requires both internal and external measures. ALTO BROKER strengthens the latter — providing management teams and their businesses with added security — while other ALTO service lines continue to focus on preventive strategies.

 

Experienced Team Led by Paweł Stasiaczyk

ALTO BROKER continues to be led by Paweł Stasiaczyk — an experienced insurance broker — together with his established team, ensuring full business continuity.

Paweł built his professional career in leading Polish brokerage firms. He specializes in D&O, tax liability, and professional liability insurance, consistently delivering top-tier brokerage services, including risk assessment, as well as drafting, reviewing, and negotiating insurance contracts. In this capacity, he supports some of Poland’s leading companies, including those listed on the Warsaw Stock Exchange and NewConnect.

“I am glad that ALTO BROKER is now formally part of the ALTO Group. This step will allow us to fully leverage our expertise and resources in seeking optimal solutions for our clients”, says Paweł Stasiaczyk, Head of Property & Liability Insurance Practice.

Integrating the former PROTECTO into ALTO fully supports our strategic growth ambitions and strengthens our ability to deliver comprehensive client service.

“The addition of another Service Line is an important milestone for ALTO. Risk management has become particularly relevant for businesses in recent years, and this trend shows no signs of slowing down. I am confident that ALTO BROKER will deliver tangible value to both our existing and future clients. Paweł and his team are already growing dynamically, and we are also working on further strengthening this area,” comments Kamil Lewandowski, Chief Growth Officer at ALTO.

 

About ALTO

For nearly 14 years, ALTO has been supporting businesses in the areas of tax, accounting, payroll, and — more recently — ESG and risk management. With the addition of brokerage services, ALTO now offers an even broader portfolio of business advisory — all under one brand. In this way, we provide clients with a complete ecosystem of solutions, strengthening our position as a trusted partner that supports companies in achieving secure and efficient growth.

From the beginning of July 2025, ALTO welcomes three highly experienced and dedicated individuals to its partnership team. Three distinguished tax experts and advisors, previously serving as Senior Managers, have now been promoted to Partner level: Katarzyna Adamowicz, Karolina Mazurkiewicz-Grzybowska, and Dominik Niewadzi. 

This significant milestone is not only a moment for congratulations but above all, a recognition of their pivotal role in developing our services, teams, and client relationships – all of which they have built successfully over the years. 

 

Three experts, three specializations 

Each new Partner brings unique expertise within their area of specialization and years of experience that have consistently delivered tangible results for our clients. Let’s take a closer look at their profiles. 

 

Katarzyna Adamowicz began her journey with ALTO in July 2012, joining the team as a Consultant after her initial internship. After an eight-year break, she returned to take on the role of Senior Manager, and now – just three years later -she joins the partnership. 

Over the past years, Katarzyna has consistently developed her expertise in both direct and indirect taxation, leading projects focused on risk minimization and tax savings, particularly in VAT. As the team leader for the National e-Invoicing System (KSeF), she manages comprehensive projects for large organizations, combining tax, process, and technological knowledge. Her approach is rooted in a deep understanding of client challenges and a strong emphasis on regulatory compliance and operational security. 

“I am delighted to be able to further develop my practice and my team as a Partner. I believe that together, leveraging our complementary skills, we will continue to create new products that deliver increasingly innovative and specialized services to our clients,” - says Katarzyna. 

 

Karolina Mazurkiewicz-Grzybowska is a highly valued expert specializing in tax advisory for the insurance sector. Her practice focuses on corporate taxes (CIT and VAT) as well as PIT on protection and investment products. 

Working with the ALTO Insurance team, she advises the largest insurance groups on the Polish market. Her deep understanding of the financial sector enables her to design solutions tailored to the rapidly changing legal and regulatory environment and the expectations of regulators. 

“Years of collaboration with the insurance industry have taught me that understanding the market’s specificities and staying up to date with regulatory developments are essential for providing top-tier tax advice to insurers. As a Partner, I want to continue supporting insurance companies and developing solutions for the sector together with the ALTO Insurance team,” - emphasizes Karolina. 

 

Dominik Niewadzi is promoted to Partner as one of the pillars of ALTO’s tax litigation team. His experience includes representing clients in the most challenging tax proceedings before tax authorities, the Social Insurance Institution (ZUS), and administrative courts. 

He is known for his precise risk analysis, effective argumentation, and strategic approach to tax disputes. Dominik combines client advocacy in disputes with advisory functions. In his work, he not only represents clients during audits and proceedings but also helps companies build robust and secure procedures to prevent disputes from arising. 

“I believe that effective client defense in tax disputes requires a holistic view of both regulations and the client’s business, as well as the ability to present the entrepreneur’s perspective clearly and convincingly to authorities and courts. Equally important are actions aimed at preventing disputes. As a Partner at ALTO, I want to continue strengthening this perspective and lead the team toward comprehensive solutions,” – comments Dominik. 

 

Partnerships that build the future 

At ALTO, we are convinced that true value for clients is created where expert knowledge meets a deep understanding of business. These new partnerships are not just internal promotions—they are a promise of continued development in the quality and commitment of our daily advisory services. 

Every promotion to partnership is not only a moment for celebration but above all, a confirmation of the immense importance of our people. Kasia, Karolina, and Dominik are outstanding experts who have repeatedly demonstrated that they deserve the full trust of clients, teams, and the entire organization. They lead their teams with energy, empathy, and full commitment. This step is not only an appreciation of their journey so far but also the next stage in realizing our strategy of building an expert-driven organization that can effectively respond to the challenges of today’s tax, finance, and business transformation landscape—while always recognizing talent” – emphasizes Sylwia Kulczycka, Managing Partner and head of the tax team at ALTO. 

The promotions of Katarzyna, Karolina, and Dominik mark another chapter in ALTO’s history as a modern organization supporting business. Our new Partners strengthen our core competencies – from digital transformation and specialized industry advisory to comprehensive legal and tax protection. 

Congratulations! We look forward with anticipation to what the future holds for our clients, teams, and the entire organization. 

The recently announced results of the ITR World Tax and ITR World TP 2025 rankings have brought us distinctions in three categories:

• General Corporate Tax
• Transfer Pricing
• Tax Controversy

 

What’s more, the ITR World Tax 2025 ranking also recognized the individual expertise demonstrated by our specialists throughout their projects – in the General Corporate Tax and Tax Controversy categories.

• Sylwia Kulczycka, ACCA (Partner & Tax Advisor) – Woman in Tax Leader, Highly Regarded, General Corporate Tax
• Aleksandra Bońkowska (Partner & Tax Advisor) – Notable Practitioner, General Corporate Tax
• Karolina Mazurkiewicz-Grzybowska (Senior Manager & Tax Advisor) – Rising Star, General Corporate Tax
• Dominik Niewadzi (Senior Manager & Tax Advisor) – Rising Star, Tax Controversy
• Łukasz Kalisz (Manager, Tax Advisor, Advocate) – Rising Star, General Corporate Tax

 

We congratulate our tax teams, as well as each individual recognized, for this incredibly valuable acknowledgment of their work. You’ve got the power!

We know that behind every success are amazing people and their hard work. We also know that moments like these inspire us to aim for the stars and set even more ambitious goals, so we wish you many more great projects to work on ALTOgether.

We also want to thank our Clients for their trust and continued support, and the entire ALTO team for their unwavering commitment

Even as summer draws to a close, we can confidently say it has been an exceptionally dynamic period at ALTO, marked by numerous changes. In July, we welcomed Tomasz Wagner as a Partner. Tomasz is a tax advisor with 17 years of professional experience, gained at an international consulting firm.

Tomasz will spearhead the development of our advisory services in the area of indirect taxes and will primarily assist ALTO’s clients with matters related to VAT, including the international trade of goods. Additionally, he will provide expertise on issues where tax and para-tax regulations intersect with sustainability and ESG topics.

„I thrive on tackling advisory challenges in areas subject to tax and legislative changes, particularly those related to environmental and ecological topics. Given my strong focus on the circular economy, I have recently dedicated significant attention to the food production sector, retail/FMCG industry, as well as packaging and recycling. This focus is driven by the upcoming regulations that will soon introduce a deposit return system in Poland, providing a conscious advisor with substantial opportunities to support businesses, extending well beyond tax implications alone.

I believe a good tax advisor also serves as a business consultant, guiding clients through challenges in legislative, compliance, and reporting areas. It is only through comprehensive business care that we become true partners for those responsible for finance and key legal or tax matters within companies.

By joining ALTO, which provides integrated services across various business lines, including tax and ESG, I believe I will be able to fully leverage my expertise to support companies in both of these areas” – comments Tomasz Wagner, Partner & Tax Advisor

Tomasz has extensive experience in tax planning, VAT/cash flow management, and managing tax-related risks. He is also skilled in handling communications and disputes with tax authorities. Tomasz assists clients with VAT registration and compliance, as well as in securing individual tax rulings and binding rate information.

He offers advisory services for a wide range of domestic and international transactions, including intra-community trade, imports, exports, chain transactions, and turnkey projects.

„Tomek’s addition to our team represents a significant step forward in the growth of our company and the strengthening of two key business lines. While indirect taxes have long been part of ALTO’s services, integrating them with environmental issues will enable us to offer products tailored to the needs of modern, conscious businesses. Having firsthand knowledge of Tomek’s expertise, I am confident that he will not only help expand our service portfolio to include the increasingly important area of environmental matters but also enhance our existing solutions with his multidisciplinary approach, drawing on knowledge from various fields” – comments Kamil Lewandowski, Chief Growth Officer.

Many new legislative measures, such as the plastic tax, the SUP directive, and the Carbon Border Adjustment Mechanism (CBAM), fall within Tomasz’s expertise and are harmonized at the EU level. Consulting in these areas can be of great importance for companies across various industries.

The concept of a circular economy, which is increasingly relevant for beverage producers, will gradually extend to other manufacturing sectors, especially in light of the growing focus on Extended Producer Responsibility. ALTO clients can rest assured that their advisors will incorporate these considerations, providing them with the confidence needed for planning actions, investments, and making crucial decisions.

Having led the transfer pricing team at ALTO for more than three years, Aneta Grzyb, previously a Senior Manager, is an experienced tax and legal advisory specialist. As of July 2024, due to the dynamic growth of her team in recent years and in recognition of her consistency and efficient performance, she will take on the role of Partner in the company’s tax business line.

 

I am thrilled that three years ago, I chose to join such a dynamic company as ALTO, which is actively strengthening its position in the tax advisory market. I am proud of what we have accomplished together and optimistic about the future. With a team like mine and the resources that ALTO provides, I am confident that we can achieve remarkable things and elevate transfer pricing to a higher, global level – says Aneta Grzyb, Partner, Tax Advisor, Advocate.

Transfer pricing consultancy is not only an obligation for companies but also an opportunity to plan processes strategically and securely. Effective and consistent implementation of a well-defined strategy is the foundation for growth, especially in the long term, and regular review and adaptation to changing market and regulatory conditions is essential. This is why Aneta, together with the entire ALTO team, is constantly working to provide the best possible support and security for clients in this rapidly evolving regulatory and business environment.

 

Sounds like mission impossible? Sometimes it is, but our Tax Litigation team proves every day that there are no impossible things for them. The team is led by two experienced managers: Łukasz Kalisz (Advocate & Tax Advisor) and Dominik Niewadzi (Tax Advisor) supported by four consultants: Maciej Matłok, Marek Kortala, Marcin Gliszczyński and Maksymilian Skurzak.

 

 

Tax Litigation – what does it actually mean?

The wide-ranging tax inspections and disputes handled by our Team include not only impressive litigation, but also more mundane tax or ZUS contribution inspections, enforcement and security proceedings, and the not-so-pleasant ones involving fiscal criminal liability. It is also the recovery of often spectacular, multi-million (!) amounts of tax that, for various reasons, has been overpaid. Sometimes this also involves a struggle on the subject of incorrectly imposed, multi-million dollar penalties. As the authorities’ practice varies and is not always uniform, in case of doubts as to the correct model of proceedings, the team often also supports the clients of ALTO in obtaining individual interpretations or precautionary opinions, which are of considerable importance in case of possible difficulties later on.

It is also no less important to prevent disputes that are difficult to foresee – it is not uncommon for a client to seek support while still needing to secure their position for the future. Although the situation encountered is not always ideal, with the right approach and knowledge, our experts find solutions to positively influence the client’s situation and take arguments out of the authority’s hands in the event of a future audit or dispute.

 

Thinking outside the box in practice

However, if a dispute with an authority does arise, ALTO’s Tax Litigation Team represents clients in the course of inspections, court and administrative proceedings, often breaking the – seemingly already established – unfavourable to taxpayers line of jurisprudence or interpretation. They often contribute to its establishment in precedent-setting cases, when the regulations are new and the jurisprudence practice has not yet been developed at all. In such situations, years of procedural experience and the ability to think against the established patterns, “out-of-the-box”, pay off particularly clearly. This is all the more so as they often affect the situation of numerous and significant groups of taxpayers – from individuals to multinational corporations.

There is no shortage of examples, and we present some of the most interesting ones below.

 

• The first case study may be the representation of a client in a highly significant proceeding related to the limitation of costs of intangible services under Article 15e of the CIT Act. An unfavourable tax interpretation meant that the client was obliged to recognise at the ‘head office’ level the revenue of the affiliate company, while at the same time not being entitled to include all costs in the tax result. He was therefore effectively bearing the economic burden on the business presence in Poland. However, the out-of-the-box approach soon paid off. While not questioning the approach of qualifying the separate company as a permanent establishment, our team demonstrated that limiting the services purchased from it was completely out of place. The arguments, backed up by strong evidence, were so convincing that the overpayment was reimbursed by the authority without even having to get into a dispute. The team’s original conception and actions meant that, ultimately, the client’s business model in Poland proved to be economically viable.

 

• Although individual interpretations are intended to provide taxpayers with certainty that their actions will not be challenged, there do occur situations when the authorities deny their protective power. Sometimes this results not only in, for example, a refusal to refund tens of millions of excess VAT, but even in the imposition of sanctions amounting to several millions – in such a bizarre and at the same time difficult situation, expert support is necessary. In the case conducted by our team, the actions of the authority were already challenged at the level of the Voivodeship Administrative Court (WSA), and then confirmed at the stage of the Supreme Administrative Court (NSA), which dismissed the cassation appeal of the Director of the Tax Administration Chaber (IAS). The main conclusion is that, contrary to the practice of some authorities, there is, however, a certain limit to the requirements as to the description of the facts in the application for interpretation submitted by a taxpayer. Namely, it must indicate only what is relevant from the perspective of interpretation of the regulations, while in order to undermine the protective power of the interpretation, the authority should indicate specifically that a different description would actually contribute to a different legal assessment. In this case, our experts proved that this was not the case: thus, the authorities did not have any grounds to undermine the protective power of the interpretation.

 

• Criminal tax proceedings are only enjoyed by the tax authorities and some advisers – from the taxpayer’s perspective, there is nothing pleasant about them. One of the cases won by our experts proved that it is possible to counteract the widespread abuse of criminal law in tax cases, which is an unparalleled problem created by the Polish tax authorities. Indeed, these authorities very often initiated criminal proceedings in order to suspend the running of the tax limitation period without any specific reason. And the fact that the ALTO team obtained a favourable verdict in a case conducted for a client and forced the tax authority to admit to committing abuses shows that this type of negative phenomenon can and should be challenged.

 

• Is a taxpayer entitled to adjust the rate of VAT on consumer sales documented by receipts? According to the authorities – no. According to the Tax Litigation team – yes. The optimistic approach to the case resulted in the fact that at the level of proceedings before the Supreme Administrative Court (NSA), the argumentation of the authorities completely collapsed, and the Court agreed with us that there are no obstacles to taxpayers correcting the records of receipted sales. The ruling won by our team is in fact important not only for the client, but for all entities conducting retail sales. For in a situation where, for example, the applied VAT rate was too high, the authorities should not hinder them from exercising their right to correct the tax.

 

• Another of the landmark cases of recent years, in which the Tax Litigation team had the opportunity to demonstrate an out-of-the-box approach, was the support at the stage of the dispute before the tax authorities, as well as before the court, of companies that decided to jointly declare tax and concentrate within a tax capital group. However, an issue arose with regard to the settlement of tax losses – in principle, it can be settled within five consecutive years. However, this law has been challenged by the Polish tax authorities. Fortunately for the client, and thanks to a pioneering argumentation based on a whole series of closely related steps – i.e. interpretation of the CIT Act, linguistic interpretation, systemic analysis and historical analysis of the legislation, combined with arguments concerning the prohibition of discrimination of taxpayers – the client’s claims were fully recognised by the court and the company recovered the overpayment. The judgment unequivocally confirmed an entitlement that groups had never been able to exercise before. And the settlement of previous years’ losses can result in significant savings!

 

Such examples could, of course, be multiplied. However, due to the often secretive and confidential nature of the cases conducted by our experts, it is difficult to boast about them on a daily basis. However, this does not change the fact that in a battle with the authorities, the taxpayer is not always at a losing position. With the support of not only qualified, but also out-of-the-box specialists at their side, even cases that seem to be lost in advance can be turned to the taxpayer’s advantage.

At ALTO, we support family-owned businesses, medium-sized companies as well as multinationals and large corporate groups daily. At the same time, we are aware that the results obtained have a direct impact not only on the situation of our clients, but often on the entire market and the position of thousands, if not millions of taxpayers. And even though tax proceedings or litigation often drag on for years, their conclusion is often very rewarding. To ensure that this is the case, in each instance we focus on a fully individualised approach to the matter and the most effective support from the earliest possible stages of support.