Did you fail to file your tax return on time? Or did you hide the true extent of your business activities from the tax authorities? Have you forgotten to pay your taxes on time? Unfortunately, for various reasons, such as forgetfulness, lack of knowledge or simple error, tax obligations are often not fulfilled on time or in accordance with the applicable regulations. In such situations, there is a fear that the taxpayer will be penalised. Fortunately, there is no need to worry – it is possible to avoid punishment through the institution of active regret, i.e. the voluntary reporting of the commission of a crime or tax offence.
What is active regret?
Pursuant to Article 16 of the Fiscal Penal Code, a perpetrator who, after committing an offence, notifies a law enforcement agency of the offence and discloses the relevant circumstances of the offence, in particular the persons who participated in the commission of the offence, shall not be liable to punishment for the fiscal offence or the fiscal infringement. It is therefore possible to avoid penalties, but certain conditions must be met.
How can the institution be used?
The entrepreneur will not be entitled to use the institution of active regret if:
- the law enforcement authority already has clearly documented knowledge of the commission of a fiscal offence;
- the law enforcement authority has initiated official acts, in particular searches, checks or controls aimed at revealing a fiscal offence or a fiscal misdemeanour, unless these actions have not provided grounds for initiating proceedings for that offence;
- directed the execution of the disclosed criminal act;
- took advantage of another person’s dependence on him and instructed him to carry out the disclosed criminal act;
- organised a group or association with the aim of committing a fiscal offence
- induced another person to commit a tax offence or a tax offence.
Thus, an active repentance will only be effective if the entrepreneur admits to having committed a tax offence or a tax crime before the law enforcement agency independently documents the offence or crime or before the law enforcement agency initiates actions aimed at detecting the offence or crime. Therefore, despite the fact that there is no legal deadline for filing an active repentance, it is recommended that the entrepreneur take action as soon as possible.
In order to make use of this facility, a written notification must be submitted to the competent tax authority. In this letter, it is necessary to describe in detail the error committed, the circumstances in which it occurred and the corrective measures to be taken, i.e. the payment of the outstanding tax liabilities, together with the interest due. It is worth remembering that an active complaint can be submitted not only in writing, but also orally in the minutes of the tax office. An active regret can also be submitted electronically, e.g. via e-Fiscal Office.
It is important that the active regret is submitted by the person who has not fulfilled the obligation. For example, if the entrepreneur uses the services of an accountancy firm and the fault lies with the accountancy firm, the active regret must be submitted by the accountancy firm.
Conclusion
Active regret is an institution that can help taxpayers and protect them from serious consequences. It is essential that the active regret meets all the formal requirements. Although filing an active regret does not exempt you from the obligation to pay overdue taxes and interest, it does allow you to avoid additional penalties. If you have any doubts, you can also contact us remotely: https://atl-law.pl/prawo-podatkowe/