Risk of charging interest during customs control
Recently, we have observed a continuation of the negative line of rulings by administrative courts regarding the charging of interest on tax arrears for the period of prolonged customs and fiscal inspections. On 16 July 2024, the WSA in Gdańsk issued a judgment stating that the provisions of the Tax Ordinance limiting the charging of interest on tax arrears are not applicable in such cases.
According to Krzysztof Wojciechowski of Thedy & Partners, this ruling confirms that some provincial administrative courts agree to time-limited interest accrual in the course of prolonged customs and tax inspections. It is worth noting, however, that this is a different approach from the one presented in some previous rulings. An example is the judgement of the WSA in Kraków, in which the court stated, referring, inter alia, to the jurisprudence of the Constitutional Tribunal, that the provisions of the Tax Ordinance limiting the charging of interest should also apply to customs and fiscal inspections.
The aforementioned judgment of the WSA in Gdańsk is not yet final. Nonetheless, taxpayers should be aware of the possible consequences of this ruling, especially if the customs and fiscal control conducted against them is significantly prolonged. In such a situation, there is a risk that interest on tax arrears may be charged for an unlimited period of time, which may lead to significant financial burdens.
– We strongly disagree with rulings that place the financial consequences of prolonged / protracted customs and tax audits on taxpayers. In our opinion, even if the Tax Ordinance does not directly regulate the cases in question, the principle of trust is enshrined therein to fill this legislative gap, argues Krzysztof Wojciechowski.
Nevertheless, taxpayers should carefully monitor the course of inspections and react quickly to situations that threaten their interests. Often, in such situations – in order to be effective – it is necessary to involve professional attorneys with experience in such matters.
If at any time customs and tax inspections are carried out in your organisations, we can take a closer look at them, if only from the perspective of reducing the risk related to the accrual of interest on arrears for the entire period – often several years – of the inspection conducted.
Judgment of the WSA in Gdańsk of 16 July 2024, case ref. no. I SA/Gd 383/24
Judgment by the WSA in Kraków of 19 October 2022, file ref. no. I SA/Kr 594/22