Governmental law amendments project of 24 August 2018, if enacted, will significantly change general anti-avoidance rule (GAAR) in Poland starting from 2019.

Currently Polish general anti-avoidance rule (GAAR) is applicable only in case a taxpayer action is taken mainly for purpose of obtaining a tax advantage that, in given circumstances, defeats the object or purpose of the applicable provision of the tax law,  if the way of action was artificial. This mean that to apply GAAR tax authorities have to prove amongst other that a taxpayer action was aimed mainly for obtaining such a tax benefit e.g. that other economical benefits resulting from the action were non significant.

If the amendments are enacted any action aimed at obtaining tax benefit will be subject to general anti-avoidance rule (GAAR) unless the tax benefit is non significant in comparison to other economical benefits resulting from the action. Additionally any action undertaken for non genuine economical reasons, other than obtaining tax advantage that in given circumstances, defeats the object or purpose of the applicable provision of the tax law, will be deemed artificial.

There is a risk that the amendments, if enacted, will result in tax authorities challenging the taxpayers right to act in a way resulting in lowest taxation (right to optimize genuine tax payers economical activity).