Liability of Management Board Members for Tax Arrears in Light of This Year’s CJEU Rulings
According to the Court of Justice of the European Union (CJEU), fundamental principles of EU law – including the right to defence and the principle of proportionality – require that specific procedural safeguards be afforded to third parties who may be held liable for tax obligations that are not their own. In effect, this challenges the previously strict approach adopted by Polish tax authorities and administrative courts.
What exactly has changed as a result of these rulings?
A final decision issued against a taxpayer must not infringe upon the third party’s right to defence. Therefore, during proceedings conducted against a third party, that party must be given the opportunity to contest both the factual findings and legal classifications set out in the decision concerning the taxpayer.
Moreover, the ability of a third party to demonstrate the absence of liability for the taxpayer’s tax debt must not be merely theoretical. According to the CJEU, it is essential in such proceedings to determine whether the third party: “acted in good faith, exercised all due care expected of a diligent economic operator, took all reasonable measures within their power, and whether their involvement in fraud or abuse can be excluded.”
If you would like to understand how the CJEU rulings in cases C-278/24 (Genzyński) and C-277/24 (Adjak) may impact your situation, we encourage you to contact our team of experts.