1. Tax return adjustment – Polish rules Moscow, 1 4 th April 2011

2. Tax return adjustment - general remarks A tax return adjustment may be submitted by: taxpayers (also tax remitters and tax collectors) – but some restrictions apply tax authorities in a certain circumstances only. 2

3. T AX RETURN ADJUSTMENT SUBMITTED BY TAXPAYER 3

4. Tax return adjustment submitted by taxpayer A tax return shall be adjusted by a taxpayer by means of submitting an adjustment tax return accompanied with written explanation for the adjustment. Adjustment of tax return may be submitted when in a previous tax return a taxpayer declared underestimated amount of tax. If a taxpayer overpaid a tax, the taxpayer may submit an application to establish an overpayment with tax return adjustment attached. However the tax return adjustment is only a formal addition to the application. 4

5. Tax return adjustment submitted by taxpayer – restricted periods (1) The right to adjust the tax return is suspended for the period of tax proceedings or a tax inspection within the scope of the proceedings or the inspection. An adjustment during the tax proceeding or tax inspection within the scope of the proceeding or the inspection has no legal effect. 5

6. Tax return adjustment submitted by taxpayer – restricted periods (2) However, the taxpayer has right to adjust the tax return during the tax inspection if the tax inspection is carried out by Tax Inspection Authorities (i.e. special tax inspection separated from „regular” tax authorities). The taxpayer may adjust the tax return within 7 days from a day of receipt a formal letter from Tax Inspection Authority. 6

7. Tax return adjustment submitted by taxpayer - restricted periods (3) The right to adjust the tax return may be continued after the completion of: a tax inspection – before commencing a tax proceedings tax proceedings – in the scope not covered by the decision assessing the tax liability 7

8. Tax return adjustment submitted by taxpayer – reduced interests rate (1) As a rule, while paying outstanding tax liability, penalty interests (currently 13% p.a.) is due. If the taxpayer submit a legally effective adjustment of the tax return with justification of the reasons and the payment of the entire tax arrears is made within 7 days after the day of submitting the adjustment, the taxpayer may apply a reduced penalty interest at the rate of 75% of the statutory rates (currently 9,75% p.a.). 8

9. Tax return adjustment submitted by taxpayer - reduced interests rate (2) The reduced interests rate is not applied if the tax return: is submitted after a notification of the intention to initiate a tax inspection or after the completion of the tax inspection when the notification is not applied is submitted as a result of inspection activities of tax authority. 9

10. Tax return adjustment submitted by taxpayer Lack of a fiscal criminal liability If the taxpayer submit a legally effective adjustment of the tax return with justification of the reasons and promptly make a payment, no liability for the fiscal crime shall be applied. 10

11. T AX RETURN ADJUSTED BY TAX AUTHORITIES 11

12. Tax return adjusted by tax authority (1) If the tax authority discovers that the tax return includes miscalculation or other obvious mistakes, or it was filled in contrary to the required conditions, the tax authority, depending on the character and scope of errors, shall: – correct the tax return by making suitable corrections or supplements, if changing the amount of the tax liability, overpayment, tax refund or loss as a result of this correction does not exceed the amount of 1.000 PLN (app. 250 EUR) – demand taxpayer to adjust tax return and provides necessary explanations including the reasons of the demand 12

13. Tax return adjusted by tax authority (2) The taxpayer is entitled to lodge an objection against the adjustment made by tax authority within 14 days from the day of delivering a certified copy of the tax return adjustment. Lodging the objection shall cancel the adjustment. If no objection is lodged by the taxpayer, the tax return adjusted by tax authorities has such legal effects as the tax return adjustment submitted by the taxpayer. 13

14. Tomasz Michalik KRAJOWA IZBA DORADCÓW PODATKOWYCH ul. Bitwy Warszawskiej 1920 roku nr 3/310, 02- 362 Warszawa, NIP 526-26-10-268 tel. (+48 22) 578 50 00, fax (+48 22) 578 50 09, biuro@kidp.pl, www.kidp.pl