The Supreme Administrative Court today adopted two resolutions important for taxpayers:
- administrative courts may examine the legitimacy of initiating fiscal penal proceedings, i.e. whether they could only serve to suspend the limitation period for a tax liability – sign. I FPS 1/21;
- income derived from rental, lease and similar contracts are included without limitation in the source of rental income (Article 10 (1) (6) of the PIT Act), unless for the taxpayer it is an element of property related to business activity (where the real estate is booked as such property) – sign. II FPS 1/21.
The first of them may be of great importance in a situation where it was the initiation of such proceedings that determined the lack of limitation of the tax liability. The tax authorities have often led to the initiation of tax proceedings in order to prevent tax liabilities from becoming time-barred. Now, both this practice and this effect may be questioned.
In turn, the second one should help to clarify the division when a natural person settles private rental/lease, and when lease as part of business activity. The presented approach may significantly reduce the situation in which private rental/lease cannot be settled, therefore it may contribute to increasing the popularity of this form of settlement.