New ruling of the Ministry of Finance: what may happen to management board members if a company is in tax arrears?

The rules of management board members’ liability for tax obligations are set out in the Tax Act. If a company has back taxes (e.g. has failed to pay VAT or CIT) and the taxman cannot recover the money from the company, he may seek payment from the board members. They may then be forced to pay the dues to the government. The said liability is subsidiary and several. It applies only to taxes which became due while the board member was in office. 

The new ruling comes in response to two judgments of the EU Court of Justice which have challenged the practices in Poland. The ministry has clarified a few significant aspects such as the board members’ right of defence, access to documents, and the option to escape liability for the company’s debts.

Even though the principle of liability itself remains unchanged – management board members may still be liable with all their assets – the new ruling provides more defence options. Revenue authorities must now investigate deeper and consider claims raised by board members who challenge the existence or value of their company's tax arrears.

If you want to check how the Finance Minister’s explanations affect your board members or rights in a pending case about liability for company debts – contact us​. We will help you analyse your situation and take the right actions.​​​​​​​​​​