Articles & Publications
HomePage 2

Navigating Post-Divorce Child Contact Arrangements in Poland

Child contact

Embracing a new chapter post-marriage dissolution can be intricate, especially when it comes to matters involving children. Commonly, after the bonds of matrimony fray, parents find themselves at odds over crucial child-related decisions. Setting up a coherent visitation schedule becomes a daunting task, often leading to one parent limiting the other’s interaction with the child.

In the context of divorcing couples with shared minor children, Polish courts play a pivotal role in delineating the contours of contact arrangements. The divorce decree becomes a canvas upon which the schedule of interactions between the non-custodial parent and the children is artfully painted. This court-sanctioned schedule is binding, carrying the weight of legal consequences if not adhered to.

The exception to this rule surfaces when both spouses unite in a joint request to keep child contact matters outside the divorce decree. In this scenario, the court refrains from imposing a schedule.

Child contact encompasses a gamut of interactions, spanning from maintaining correspondence to leveraging digital avenues like WhatsApp, Skype, and phone calls. Additionally, it includes physical presence in the child’s life, encompassing visits, meet-ups, and even the potential for the parent to take the child abroad as part of these interactions.

The granularity of contact arrangements is subject to variation. Some cases call for meticulously crafted schedules with fixed dates and hours for interactions, while others adopt a more fluid approach, where each interaction is individually agreed upon by the parents.

However, the court’s role isn’t solely confined to establishing a roadmap for contact. It also wields the authority to curtail or shape these interactions for the child’s best interests. These limitations may involve restrictions such as disallowing in-person meetings, preventing the child’s relocation from their permanent residence, or even mandating the presence of a guardian, probation officer, or court-appointed individual during interactions.

In extreme cases, the court can completely halt contact if it deems that the child’s well-being is at stake. Decisions surrounding contact arrangements aren’t static; they can evolve over time based on changing circumstances or new evidence.

Engaging in legal proceedings involving child contact is a nuanced journey, particularly when international elements come into play. Cases involving cross-border parental residence, potentially impacting the child’s travel, add an extra layer of complexity. In such situations, seeking guidance from a dedicated Family Law Firm in Poland becomes indispensable. These experts adeptly navigate the intricacies of court proceedings, ensuring that your requests are eloquently presented and substantiated by compelling evidence – all aligned with the child’s best interests.

Our team of experienced family lawyers stands ready to walk with you through the labyrinthine corridors of court proceedings in Poland. Don’t hesitate to reach out – we’re here to guide you toward a resolution that safeguards the well-being of your child while respecting your rights as a parent.

For further information, contact Bernard:

Email / Tel

bernard.lukomski@kpbl.pl

+48 608 093 541 (Mobile)

+48 692 802 229 (WhatsApp)

Unveiling a New Era: Navigating the Landscape of Poland’s National e-Invoice System (KSeF)

KSeF

Embarking on a revolutionary journey to reshape the landscape of VAT invoicing, Poland introduces the National e-Invoice System (KSeF). This ground-breaking initiative, initiated in January 2022, promises to redefine the issuance and receipt of VAT invoices, propelling businesses into a new era of digital efficiency. While its initial rollout was optional, the mandatory adoption of KSeF is on the horizon, slated to commence in July 2024.

In the realm of corporate operations, one of the foremost challenges enterprises confront is the construction of bespoke tools or the hunt for pre-packaged solutions that align seamlessly with the intricate compliance requirements of e-Invoicing. The intricate process of integrating these solutions with the taxation framework amplifies the complexity. The heartbeat of this challenge lies in the necessity to adhere to meticulous standards, encompassing the very fabric of document structures, along with the registration of these documents within the governmental ecosystem. This endeavour presents a formidable hurdle, especially for conglomerates dealing with an avalanche of documents awaiting transformation into the new-age format.

In the endeavour to decipher the key challenges entailed in the implementation of KSeF, we shed light on the pivotal hurdles faced by entities, accompanied by strategies and support mechanisms that pave the way for a seamless transition. Our focus lies in unravelling the essential elements that pave the path to a successful integration of the groundbreaking e-Invoice paradigm.

Charting the Course: Decoding the Path to Implementing e-Invoices

The dawn of the National e-Invoice System was heralded on January 1, 2022, as structured invoices began to flow through the digital arteries of the Ministry of Finance’s innovative ICT system, the KSeF. The initial phase allowed for voluntary participation, largely attributed to regulatory gaps and technical intricacies that required ironing out. It wasn’t until a recent legislative revision that the much-anticipated solutions, conceived through public consultation, were woven into the fabric of the system. Consequently, the deadline for making KSeF obligatory for all VAT invoices in Polish commercial transactions was extended by six months, setting the stage for a mandatory shift by July 1, 2024.

As this timeline unfurls, it’s imperative not to underestimate the scale of transformation that looms ahead. The magnitude of preparations required extends beyond the technological spectrum and delves deep into the procedural and operational facets of businesses. The labyrinthine tax implications accompanying this transition necessitate meticulous planning and meticulous execution.

The Legal Tapestry: Navigating Legal and Tax Implications

A lapse in adhering to the National e-Invoice System’s mandates can summon penalties of significant magnitude. Taxpayers breaching their obligation to utilize KSeF, issuing invoices incongruent with prescribed templates, or failing to dispatch invoices on time are susceptible to fines imposed by the tax office. These fines could range up to 100% of the tax amount indicated on an invoice issued outside the KSeF framework. Even in instances where no tax is indicated, fines up to 18.7% of the total invoice amount are not to be taken lightly. The veil of data privacy lifts as tax authorities gain unrestricted access to the data housed within KSeF, allowing for meticulous oversight.

The Vigilance of Transformation: Real-time Insights into Transactions

July 1, 2024, ushers in a new era of real-time transaction vigilance. The tax authorities’ access to granular transaction data during invoicing necessitates precision in data submission and thorough verification to align with VAT Act provisions. When coupled with data from single control files (JPK) and advanced analytical tools, the system’s potential to unearth irregularities in VAT accounting becomes an undeniable reality.

Crafting a Future of Efficiency: The Quest for the Perfect Partner

In the pursuit of a harmonious fusion between accounting and invoicing processes, the partnership between Ecovis and Pagero emerges as a beacon of seamless integration. Empowering companies to steer their invoicing operations with heightened efficiency and security, this partnership mitigates the specter of errors. By melding expertise with cutting-edge technology, the joint platform paves the way for businesses of all scales to elevate their operations through comprehensive support.

The art of selecting the right provider for e-Invoice integration rests on multiple pillars. Experience in navigating the intricacies of tax technology projects assumes paramount importance. In this realm, Pagero emerges as a veteran, having etched its presence in the market for over two decades and making its Polish debut in 2022. Boasting the world’s largest open business network, Pagero stands as a testimony to interoperability, spanning over 140 markets and facilitating seamless compliance with local regulations. It’s a platform where invoices, orders, and other e-documents harmoniously traverse structured formats underpinned by agreed-upon data scopes.

The path forward necessitates not only technological prowess but also a comprehensive grasp of business and procedural dynamics. The union between Ecovis and Pagero champions this cause, providing the scaffolding required to scale this mountainous transformation with confidence. The prowess to handle incoming invoices from international collaborators and the facility to attach documents to invoices further underline the platform’s versatility.

Embracing the Future Today: Initiating e-Invoice Exchange

Embracing the essence of automation and efficiency, the urgency of adopting e-Invoice exchange well ahead of KSeF’s mandatory timeline becomes a strategic imperative. Unveiling the potential of automation through early initiation ushers in benefits sooner than anticipated.

As Poland’s National e-Invoice System (KSeF) charts an ambitious course, the challenges it presents are matched only by the opportunities it unlocks. By choosing the right partners, seizing the mantle of automation, and navigating this transformation with poise, businesses stand to script a future that thrives on digital efficiency and compliance. The era of KSeF is here, beckoning businesses to embark on a journey of transformation and growth.

For further information, contact Bernard:

Email / Tel

bernard.lukomski@kpbl.pl

+48 608 093 541 (Mobile)

+48 692 802 229 (WhatsApp)

Bankruptcy filing obligation – COVID

As of July 1, 2023, the state of the pandemic in Poland officially ended, marking the first time since 2020. Consequently, certain regulations that were implemented to protect businesses from the economic consequences of the COVID-19 pandemic have expired. One of these regulations is the suspension of the obligation to file for bankruptcy within 30 days of insolvency, specifically for cases where insolvency was caused by the pandemic.

Therefore, members of the management boards of Polish companies that became insolvent due to the pandemic and have not yet filed for bankruptcy were required to do so by July 30, 2023. Failing to meet this deadline may result in civil, criminal, tax, and administrative liability for the managers.

In light of these developments, it is crucial for members of Polish management boards to be aware of their obligations and take appropriate actions. This has practical implications for businesses operating in Poland.

Insolvency Tests under Polish Law:

Polish Bankruptcy Law includes two separate insolvency tests:

  1. Liquidity Insolvency Test: A debtor is considered insolvent if they are unable to pay their pecuniary liabilities as they become due. This test applies to both individuals and legal entities. If the delay in payment of pecuniary liabilities exceeds three months, it is presumed that the debtor has lost the ability to pay.
  2. Balance Sheet Insolvency Test: This test applies only to corporate entities. A debtor is presumed to be insolvent if their pecuniary liabilities exceed the value of their assets for a period exceeding twenty-four months. Future liabilities and liabilities towards partners or shareholders arising from a loan within the previous five years are not included in the balance sheet liabilities.

Insolvency-Related Obligations of Managers of Polish Companies and Associated Liability:

Managers of Polish limited liability companies and simple joint-stock companies may be personally liable for the company’s debts if enforcement against the company proves ineffective. To avoid liability, managers must demonstrate that they filed for bankruptcy in a timely manner, initiated restructuring proceedings, were not at fault for a late filing, or that creditors did not suffer any damage.

Managers may also be liable for tax and social security arrears if enforcement against the company’s assets proves ineffective. Liability can be avoided if a timely bankruptcy filing was made or if the manager is not at fault for the late filing.

Criminal and quasi-criminal liability can also arise from a lack of or late bankruptcy filing, leading to penalties such as fines, limitations of liberty, or imprisonment. Furthermore, a late filing may result in a court-imposed prohibition on conducting business or being a member of the management or supervisory boards of legal entities.

COVID Bankruptcy Filing Suspension:

During the COVID-19 pandemic, specific measures were introduced in Polish law to protect businesses, including a temporary suspension of the bankruptcy filing obligation. This suspension applied to debtors who became insolvent due to the pandemic and lasted until the state of epidemic threat was lifted.

With the state of epidemic threat ending on June 30, 2023, members of management boards of insolvent Polish companies will have until July 30, 2023, to file for bankruptcy to avoid personal liability.

Considerations and Mitigating Risks for Those Conducting Business in Poland:

Given these developments, an increase in bankruptcy filings and restructuring processes is expected in Poland. While a massive wave of bankruptcies is unlikely, it is crucial to monitor the solvency status of Polish business partners, as their bankruptcy or restructuring can significantly impact commercial relationships.

Bankruptcy or restructuring processes can lead to the deprivation of management rights, court-appointed trustees or administrators overseeing business operations, and potential invalidation of contracts predating the opening of proceedings. Restructuring processes may also prevent the termination of certain agreements without the consent of the creditors’ council.

To mitigate risks, it is advisable to continuously monitor the central register of debtors, which reveals bankruptcy and restructuring motions related to entities in Poland. This allows for timely awareness of potential risks and the ability to take appropriate actions.

Overall, staying informed, conducting thorough assessments of insolvency tests, and considering available restructuring options can help mitigate risks and ensure compliance with Polish bankruptcy regulations.

Rule of Law Report 2023. EU Commission has “serious concerns” regarding Poland

The Rule of Law Report for 2023, published by the European Commission, has raised “serious concerns” regarding the state of the rule of law in Poland. The report focuses on four key areas: national justice systems, anti-corruption frameworks, media pluralism, and other institutional checks and balances. According to the EU executive, there are persistent concerns regarding the independence of the Polish judiciary and claims of political influence over the media. The report also highlights concerns related to the so-called “Lex Tusk” legislation.

This is the fourth annual Rule of Law Report prepared by the European Commission in response to accusations from Poland and Hungary that the EU selectively addresses rule of law issues and targets these two countries. As a result, the Commission now publishes separate reports for each Member State to address rule of law deficiencies.

The chapter dedicated to Poland in the report spans nearly 30 pages, outlining challenges in the judiciary, anti-corruption measures, media freedom, and other aspects of checks and balances. The report emphasises the ongoing serious concerns about the independence of the Polish judiciary, with recent rulings from the Court of Justice of the EU reinforcing the importance of judicial independence. Concerns persist regarding the lack of implementation of judgments and interim measures from the European Court of Human Rights, as well as disciplinary investigations and proceedings against judges.

The report also highlights serious concerns related to the Constitutional Tribunal and notes that although Poland has taken steps to raise the standards of judicial independence and reform the disciplinary regime for judges, challenges remain. The issue of corruption in the public sector is also addressed, with experts and business executives perceiving corruption levels as relatively high. The report points out the absence of a new Anti-Corruption Programme and a lack of progress in strengthening lobbying rules.

Regarding media pluralism, positive changes have been introduced, but concerns have been raised about the functional independence of the media regulator. While legal safeguards for editorial independence are in place, claims of political influence over the media persist. The report emphasises the need for fair, transparent, and non-discriminatory procedures for granting operating licenses to media outlets.

The report also discusses other institutional checks and balances, including concerns about laws being adopted without adequate consultations and the delay in appointing members to the College of the Supreme Audit Office, risking its effective functioning. The controversial “Lex Tusk” legislation, which empowers an administrative committee to assess and decide on the deprivation of individuals’ right to hold public office, raises serious concerns.

The Rule of Law Report provides recommendations for Poland, including separating the functions of the Minister of Justice from the Prosecutor-General, strengthening integrity rules, ensuring independent and effective investigations and prosecutions, and enhancing the independent governance and editorial independence of public service media. It also emphasises the need for a systematic follow-up to findings by the Supreme Audit Office and urgent appointments to the College of the Supreme Audit Office.

While the report itself does not impose direct duties or trigger sanctions, it is used as a basis for other infringement procedures by the Commission. Its provisions are frequently referenced in discussions on the rule of law in Member States and EU debates on the subject. Poland and Hungary have previously rejected the report, accusing it of bias and double standards, and claiming that the Commission has overstepped its authority.

The Rule of Law Report serves as an important tool for assessing and addressing rule of law issues within the EU and promoting dialogue and accountability among Member States.

2023 Real Estate Market

Despite unfavourable external factors, the real estate market has demonstrated remarkable stability across most sectors, with the private rented sector (PRS) emerging as a resilient alternative asset class, attracting 4% of investment volume. Poland has successfully attracted €5.8 billion in capital, further strengthening its real estate market. However, caution remains as market uncertainties make it challenging to surpass previous investment volumes achieved in 2021-2022.

In response to the challenging environment, the implementation of a hybrid work model is already underway, leading to flexible lease terms and changes in office space requirements. Rising inflation has resulted in higher rent indexation and increased energy costs, potentially impacting occupier demand. Additionally, there is a noticeable shift in demand for retail space, focusing on convenience and mixed-use developments, while the popularity of shopping at discounters and outlets has grown due to inflation.

Environmental, social, and governance (ESG) considerations are driving investment in green solutions across all sectors. Property owners are expected to invest more in sustainable solutions due to the surge in energy prices. Energy-efficient buildings not only reduce operational and maintenance expenses but also provide resilience against energy and utilities cost fluctuations during the ongoing global energy crisis. ESG-compliant properties attract a broader pool of potential tenants and investors willing to pay a premium for environmentally friendly assets.

Key regulations implemented in 2022 have significantly impacted the Polish real estate market. Noteworthy changes include amendments to the Construction Law, aimed at optimising the investment and construction process, and the introduction of the Electronic Construction Log to track construction progress online. The Development Act has established a Developer Guarantee Fund to protect purchaser funds, and real estate-rich companies face limitations on tax depreciation (started from January 1, 2023). Additionally, a new tax on shifted profits has been levied on Polish entities since 2022.

The remaining part of the year 2023 poses various challenges for the real estate market, including the cost-of-living crisis, inflation, increased interest rates, the war in Ukraine, and the persistent effects of the COVID-19 pandemic. Companies must carefully assess the potential impacts of these events on their financial statements in accordance with International Financial Reporting Standards (IFRS). However, amidst these challenges, the upcoming year also presents exciting opportunities in the real estate sector. To succeed in this dynamic landscape, companies should prioritize flexibility, preparedness, and adaptability to the new normal, with ESG considerations at the forefront.

At KPBL, we offer comprehensive legal services tailored to the specific needs of our clients. Our expertise covers various aspects of real estate and construction law, including representing investors in purchase and sale transactions, assisting landlords and tenants in lease and sale-and-lease back transactions, and advising developers on commercial and residential projects. We conduct thorough due diligence reviews, provide guidance on permit acquisition and administrative decisions, and offer legal counsel for structuring and financing investment projects. Our services also extend to advising on restitution claims, corporate aspects of transactions, construction issues, land use, planning, permitting, environmental matters, and drafting and negotiating necessary documentation.

Tax efficiency and security are essential considerations in every transaction and investment project. That’s why we provide expert advice on the taxation of numerous real estate transactions, such as the purchase and sale of land and buildings. We help our clients take advantage of tax investment relief for residential purposes and explore opportunities to avoid income tax when selling or transferring real estate. Our expertise also covers the recent tax on revenues from real estate ownership exceeding PLN 10,000,000, as well as determining the applicability of Value Added Tax (VAT) and its conditions for exemption. Additionally, we offer guidance on real estate tax and stay up to date with administrative court jurisprudence and tax authority interpretations to provide clients with the most relevant and effective assistance. In case of disputes with tax authorities, we vigorously represent our clients to protect their interests.

If you require official tax interpretations tailored to your unique situation, we are well-prepared to assist you. Our goal is to present compelling legal arguments that are readily accepted by the tax authorities, ensuring efficient and timely resolution of tax-related matters.

Choose KPBL for expert guidance and representation in all your real estate and construction legal matters. Contact us today to discuss how we can assist you in achieving your goals while ensuring compliance with applicable laws and maximising tax advantages.

Mastering Corporate Law in Poland: A Comprehensive Guide for Lawyers

Introduction:

Corporate law forms the foundation of business transactions and governance in Poland. As a lawyer practicing in this field, it is essential to possess a comprehensive understanding of the country’s corporate legal framework to provide effective advice and representation to clients. From formation and governance to mergers and acquisitions, corporate law encompasses a wide range of legal principles and practices. This article serves as a comprehensive guide to navigating corporate law in Poland.

Company Formation and Structure:

The process of forming a company in Poland involves complying with legal requirements and selecting an appropriate business structure. Lawyers must guide clients through the registration process, including drafting articles of association, determining share capital, and ensuring compliance with the Commercial Companies Code. Understanding the distinctions between various types of entities, such as joint-stock companies, limited liability companies, and partnerships, is crucial when advising clients on the most suitable structure for their business.

Corporate Governance:

Corporate governance plays a vital role in promoting transparency, accountability, and the protection of shareholders’ rights. Lawyers must assist clients in developing effective governance structures, including drafting bylaws, shareholder agreements, and board charters. They must also provide guidance on directors’ duties, conflicts of interest, and corporate disclosure obligations.

Shareholders’ Rights and Disputes:

Protecting shareholders’ rights and resolving disputes is a critical aspect of corporate law. Lawyers must advise clients on matters such as shareholder agreements, voting rights, dividend distributions, and the exercise of minority shareholders’ rights. In case of disputes, they must navigate mediation, arbitration, or litigation to safeguard clients’ interests and seek equitable resolutions.

Mergers, Acquisitions, and Corporate Restructuring:

Mergers, acquisitions, and corporate restructuring transactions require comprehensive legal expertise. Lawyers must guide clients through due diligence, negotiate and draft agreements, and secure regulatory approvals. They must have a deep understanding of antitrust regulations, tax considerations, employment law implications, and intellectual property rights. Effective negotiation skills and attention to detail are crucial for achieving successful outcomes in these complex transactions.

Compliance and Regulatory Matters:

Compliance with corporate regulations and industry-specific laws is essential for businesses operating in Poland. Lawyers must advise clients on legal obligations, such as financial reporting, data protection, competition law, and anti-corruption measures. They must stay up to date with regulatory developments and guide clients in implementing effective compliance programs to mitigate risks.

Corporate Litigation and Dispute Resolution:

Corporate disputes can arise from breaches of contracts, shareholder disputes, or boardroom conflicts. Lawyers must have expertise in corporate litigation and alternative dispute resolution methods. They must possess strong negotiation, mediation, and litigation skills to represent clients effectively and seek favourable resolutions.

Conclusion:

Corporate law forms the backbone of business operations and transactions in Poland. Lawyers practicing in this field must possess a comprehensive understanding of the legal framework, corporate governance principles, and transactional intricacies. By mastering corporate law, lawyers can provide clients with sound advice, guide them through complex transactions, and help them navigate potential legal challenges. Understanding the nuances of corporate law in Poland empowers lawyers to protect clients’ interests, ensure compliance, and contribute to the success of their corporate endeavours.

How We Can Assist You in Real Estate and Construction Law Matters

At our firm, we have extensive experience in handling a wide range of real estate and construction law matters. Our team of dedicated lawyers is committed to providing top-quality legal services tailored to meet your specific needs. Here’s how we can help you:

Purchase and Sale of Real Estate:

We represent investors in navigating the complex process of buying and selling real estate. Our team will guide you through the transaction, ensuring that all legal aspects are handled efficiently and effectively.

Lease and Sale-and-Lease Back Transactions:

Whether you are a landlord or tenant, we provide comprehensive legal representation in lease and sale-and-lease back real estate transactions. Our lawyers will negotiate and draft agreements that protect your interests and ensure a smooth transaction.

Development Projects:

For developers, we offer legal support in commercial and residential projects. From due diligence reviews to organizing permits and administrative decisions, we will provide guidance throughout the development process.

Construction Issues and Permits:

Our team assists clients in addressing contentious and non-contentious construction issues. We handle matters related to land use, planning, permitting, and environmental compliance. We also represent clients in proceedings to obtain permits and administrative decisions.

Taxation and Real Estate:

We understand the importance of tax efficiency and security in real estate transactions. Our lawyers provide expert advice on taxation matters related to real estate, including purchase/sale of land and buildings, tax investment relief, income tax implications, value-added tax (VAT), and real estate tax.

Dispute Resolution:

In the event of disputes with tax authorities or other parties, we have the expertise to represent you effectively. Our team will navigate the legal process, leveraging our experience and knowledge to protect your rights and achieve a favourable outcome.

Official Tax Interpretations:

If you require official tax interpretations for your specific circumstances, we can assist you in preparing formal applications. Our applications go beyond presenting facts and include comprehensive legal arguments and positions. Our goal is to present arguments that are readily accepted by tax authorities, ensuring a smooth and efficient resolution.

Legal Analysis and Jurisprudence:

To provide you with the best possible advice, we continuously analyze administrative court decisions and interpretations of tax authorities. This allows us to stay up to date with current legal status and practices, enabling us to provide you with informed and effective assistance.

Summary:

When it comes to real estate and construction law matters, our dedicated team is here to provide you with exceptional legal services. From purchase and sale transactions to tax implications and dispute resolution, we have the expertise to guide you through every step of the process. Contact us today to discuss your specific needs and let us help you achieve your goals in real estate and construction.

Navigating Real Estate and Construction Law in Poland: A Comprehensive Guide for Lawyers

Introduction:

Real estate and construction law in Poland is a dynamic and multifaceted area of legal practice that requires a deep understanding of the country’s regulatory framework, property rights, and construction processes. For lawyers practicing in Poland, having a comprehensive grasp of real estate and construction law is essential to effectively represent clients in matters ranging from property transactions to construction disputes. This article serves as a comprehensive guide, covering key aspects of real estate and construction law in Poland.

Property Transactions:

Real estate transactions in Poland involve intricate legal processes. Lawyers play a pivotal role in conducting due diligence, reviewing contracts, and ensuring compliance with legal requirements. Understanding property rights, ownership structures, and registration procedures is essential. Lawyers must navigate issues such as land use restrictions, zoning regulations, and environmental considerations to safeguard clients’ interests.

Construction Contracts:

Construction projects require meticulous contract drafting and negotiation. Lawyers must be well-versed in construction law provisions and industry-standard contracts in Poland, such as the General Conditions of Contract (GCC) and FIDIC contracts. Ensuring clear terms regarding project scope, timelines, payment schedules, warranties, and dispute resolution mechanisms is crucial to mitigate potential conflicts and protect clients’ rights.

Permitting and Regulatory Compliance:

Compliance with regulatory requirements is a critical aspect of real estate and construction law. Lawyers must guide clients through the permitting process, including obtaining building permits, environmental assessments, and approvals from relevant authorities. Familiarity with zoning regulations, land use planning, and construction standards is essential to ensure adherence to legal obligations and mitigate potential risks.

Construction Disputes:

Disputes arising from construction projects can be complex and costly. Lawyers must be prepared to handle various types of disputes, including contract breaches, delays, defects, and payment issues. Understanding dispute resolution mechanisms, including negotiation, mediation, arbitration, or litigation, is crucial. Lawyers should possess strong negotiation and advocacy skills to effectively represent clients in resolving construction disputes.

Real Estate Development:

Real estate development involves a broad range of legal considerations, including land acquisition, project financing, permitting, construction contracts, and regulatory compliance. Lawyers play a central role in structuring and negotiating complex real estate development transactions, ensuring compliance with legal requirements, and protecting clients’ interests throughout the development process.

Real Estate Financing:

Financing is a critical aspect of real estate transactions and development projects. Lawyers must be well-versed in mortgage law, loan agreements, security instruments, and financing structures. They play a pivotal role in negotiating favourable financing terms, conducting due diligence, and ensuring compliance with financial regulations.

Conclusion:

Real estate and construction law in Poland is a complex and evolving field. Lawyers practicing in this area must possess a comprehensive understanding of the legal and regulatory landscape, as well as industry practices. From property transactions to construction disputes, lawyers play a crucial role in protecting clients’ rights and ensuring compliance with legal requirements. By navigating the intricacies of real estate and construction law in Poland, lawyers can effectively represent clients, provide sound advice, and contribute to successful outcomes in real estate and construction matters.

How We Can Assist You in Real Estate and Construction Law Matters?

At KPBL, we have extensive experience in handling a wide range of real estate and construction law matters. Our team of dedicated lawyers is committed to providing top-quality legal services tailored to meet your specific needs. Here’s how we can help you:

Purchase and Sale of Real Estate:

We represent investors in navigating the complex process of buying and selling real estate. Our team will guide you through the transaction, ensuring that all legal aspects are handled efficiently and effectively.

Lease and Sale-and-Lease Back Transactions:

Whether you are a landlord or tenant, we provide comprehensive legal representation in lease and sale-and-lease back real estate transactions. Our lawyers will negotiate and draft agreements that protect your interests and ensure a smooth transaction.

Development Projects:

For developers, we offer legal support in commercial and residential projects. From due diligence reviews to organizing permits and administrative decisions, we will provide guidance throughout the development process.

Construction Issues and Permits:

Our team assists clients in addressing contentious and non-contentious construction issues. We handle matters related to land use, planning, permitting, and environmental compliance. We also represent clients in proceedings to obtain permits and administrative decisions.

Taxation and Real Estate:

We understand the importance of tax efficiency and security in real estate transactions. Our lawyers provide expert advice on taxation matters related to real estate, including purchase/sale of land and buildings, tax investment relief, income tax implications, value-added tax (VAT), and real estate tax.

Dispute Resolution:

In the event of disputes with tax authorities or other parties, we have the expertise to represent you effectively. Our team will navigate the legal process, leveraging our experience and knowledge to protect your rights and achieve a favourable outcome.

Official Tax Interpretations:

If you require official tax interpretations for your specific circumstances, we can assist you in preparing formal applications. Our applications go beyond presenting facts and include comprehensive legal arguments and positions. Our goal is to present arguments that are readily accepted by tax authorities, ensuring a smooth and efficient resolution.

Legal Analysis and Jurisprudence:

To provide you with the best possible advice, we continuously analyze administrative court decisions and interpretations of tax authorities. This allows us to stay up to date with current legal status and practices, enabling us to provide you with informed and effective assistance.

Summary:

When it comes to real estate and construction law matters, our dedicated team is here to provide you with exceptional legal services. From purchase and sale transactions to tax implications and dispute resolution, we have the expertise to guide you through every step of the process. Contact us today to discuss your specific needs and let us help you achieve your goals in real estate and construction.

Navigating Litigation in Poland: A Comprehensive Guide for Lawyers

Introduction:

Litigation is a complex legal process that plays a fundamental role in resolving disputes within the judicial system. In Poland, as in any jurisdiction, litigation requires a deep understanding of the country’s legal framework, court procedures, and strategic considerations. For lawyers practicing in Poland, it is crucial to have a comprehensive understanding of the litigation process to effectively represent clients and achieve favourable outcomes. This article serves as a guide to navigating litigation in Poland, covering key aspects from pre-trial preparations to post-trial enforcement.

Preparing for Litigation:

Before initiating litigation, thorough preparation is essential. This involves conducting a detailed analysis of the facts, identifying legal claims, and assessing the strength of the case. Polish lawyers must meticulously gather evidence, interview witnesses, and assess potential legal remedies and defences. It is also crucial to evaluate the prospects of settlement or alternative dispute resolution methods.

Jurisdiction and Venue:

Understanding the appropriate jurisdiction and venue is crucial to initiating a lawsuit. In Poland, civil matters are generally adjudicated by common courts. It is important to determine the proper court that has jurisdiction over the dispute based on factors such as the subject matter, value of the claim, and the parties involved.

Pleadings and Court Proceedings:

Once the lawsuit is filed, lawyers must draft clear and concise pleadings that outline the claims, legal arguments, and factual basis. In Poland, court proceedings involve multiple stages, including preliminary hearings, submission of evidence, examination of witnesses, and oral arguments. Lawyers must adhere to strict deadlines and procedural rules, ensuring compliance with court requirements and effectively presenting their case.

Legal Representation and Courtroom Etiquette:

In Polish litigation, legal representation is mandatory, and lawyers have a duty to act as advocates for their clients. Courtroom etiquette, professionalism, and respect for the court are paramount. Polish lawyers must present arguments persuasively, cross-examine witnesses effectively, and handle objections with precision. Developing strong courtroom skills and maintaining a professional demeanour can significantly impact the outcome of a case.

Appellate and Supreme Court Review:

In the event of an unfavourable decision, the Polish legal system provides avenues for appeal. Lawyers must analyse the trial court’s decision, identify grounds for appeal, and prepare persuasive briefs. The appellate court reviews the case based on legal errors or procedural irregularities. In certain circumstances, the Supreme Court may grant further review, particularly when the case involves significant legal issues or conflicting precedents.

Enforcement of Judgments:

Securing a favourable judgment is only the first step; enforcing the judgment is equally critical. Polish lawyers must navigate the enforcement process, which involves identifying the appropriate enforcement authority, filing necessary applications, and complying with specific requirements. Effective enforcement mechanisms, such as asset seizures or garnishments, are crucial to ensuring the successful recovery of awarded damages or compliance with court orders.

Conclusion:

Litigation in Poland requires careful preparation, a strong command of procedural rules, and persuasive advocacy skills. As a lawyer practicing in Poland, it is imperative to understand the intricacies of the litigation process to effectively represent clients. From pre-trial strategies to post-trial enforcement, a comprehensive grasp of the legal framework and court procedures is essential. By mastering the intricacies of Polish litigation, lawyers can navigate the complexities of the legal system and advocate zealously for their clients, ultimately achieving successful outcomes in their cases.

How We Can Assist You: Exceptional Legal Representation for Your Needs

At KPBL, we are committed to delivering top-notch legal representation tailored to your specific needs. With our experienced legal team, you can trust that you will receive the best possible guidance and support in any legal matter you may face. We offer comprehensive legal services in various areas of litigation, ensuring that you have expert assistance throughout the entire process.

Labour Conflicts: Resolving Workplace Disputes

When it comes to labour conflicts, our lawyers excel in representing clients dealing with employment contract disputes, wage conflicts, and other workplace issues. We understand the complexities of employment law and are dedicated to advocating for your rights and finding swift resolutions.

Copyrights and Neighbouring Rights: Protecting Intellectual Property

Our legal team specializes in safeguarding and enforcing copyrights and neighbouring rights. Whether you are facing infringement cases or licensing disputes, we have the expertise to navigate the intricate landscape of intellectual property law and provide the effective representation you need.

Commercial Transactions: Resolving Contractual Disputes

When disputes arise from commercial transactions, such as breach of contract cases or disagreements related to the sale of goods and services, our lawyers are here to assist you. We will work diligently to protect your interests, explore favourable resolutions, and ensure that your rights are upheld throughout the process.

Personal Rights: Advocating for Your Well-Being

In matters concerning personal rights, including defamation, privacy concerns, or personal injury, our legal team is ready to fight for your rights. We understand the sensitive nature of these disputes and are dedicated to providing compassionate and effective representation to help you seek justice and fair compensation.

Guidance and Support Throughout the Litigation Process

We recognize that legal proceedings can be overwhelming and time-consuming. That is why we are committed to providing our clients with the highest level of professionalism, support, and guidance at every step of the litigation process. Our experienced lawyers will take the time to understand the details of your case, offer sound legal advice, and ensure that your interests are vigorously protected.

Schedule a Consultation Today

Don’t navigate the complexities of litigation alone. Contact us today to schedule a consultation and learn more about the extensive range of legal services we offer. Our dedicated team is here to provide you with the exceptional representation you deserve, helping you achieve the best possible outcome for your case. Let us be your trusted legal partner in your journey towards resolution.

Financial fraud and artificial intelligence.

Fraud often involves impersonation, and artificial intelligence (AI) has emerged as a potent tool that can effectively mimic human behaviour. This means that fraudsters can leverage AI to enhance the credibility, efficiency, and speed of their attacks.

AI possesses the potential to be employed for financial fraud, similar to any other technology. It can be utilised to impersonate individuals, automate phishing attacks, and manipulate data. To safeguard against the exploitation of AI for fraudulent purposes and mitigate potential risks, robust security measures must be implemented. Moreover, it is crucial to establish ethical guidelines governing the use of AI to prevent any misuse or abuse of this technology.

AI’s Role in Fraudulent Activities:

At the consumer level, AI can generate scripts that fraudsters use to deceive people over the phone and coax them into making unauthorised bank transfers.

On a larger scale, particularly concerning financial institutions such as banks and lenders, generative AI has the capability to create fabricated videos and photographs of non-existent individuals. In other words, AI can provide deceptive “evidence” to pass identity checks, enabling the opening of fraudulent accounts, execution of unauthorised transfers, and even the creation of (fake) assets or liquidity against which loans can be secured.

Recommended Actions:

The potential for AI to be employed in financial fraud cannot be overstated, especially considering the accessibility of powerful AI models like ChatGPT that anyone can utilise anonymously. Firms that may be at risk should take the following steps:

  • Scrutinise the authenticity of all identification documentation provided for anti-money laundering (AML) and know your customer (KYC) purposes. If possible, seek information from reputable third parties such as public registries or verification firms instead of relying solely on direct sources. In case of doubts, consult an in-house or external cybersecurity team.
  • Implement measures to ensure that existing clients and customers are not being “spoofed” or impersonated. This may involve employing multi-factor authentication and, in some cases, conducting face-to-face meetings to validate identities.
  • Train vulnerable staff members to recognise patterns indicative of financial fraud. Although the methods employed by fraudsters may have evolved with the use of AI, their underlying goals remain the same. Any unexplained or out-of-character transactions or borrowing without an apparent purpose should be regarded with suspicion, regardless of how convincing the supporting documentation appears.

Regulation of AI is inevitably on the horizon. In March of this year, the UK government published a white paper outlining its proposed “pro-innovation” approach to AI. However, AI is already pervasive, and the white paper itself acknowledges that “the pace of change itself can be unsettling.” In the interim, self-help is the best and only defence.

Disclaimer: This publication provides a general summary of the law and should not substitute for tailored legal advice based on your specific circumstances.

Non-transactional transfer of own goods between warehouses of the Amazon online trading platform located in different European countries.  Warsaw, June 3, 2023

The taxpayer’s dispute with the tax authorities centered around determining whether the ICS rate should be applied to the movement of own goods from the online platform’s warehouses in Poland to other EU countries. Specifically, the disagreement focused on whether the platform’s reports adequately documented the movement of goods to other countries.

The online platform functions as a cross-border network of warehouses, where the movement between warehouses corresponds to the movement of goods across different countries.

By participating in the PAN-UE program, sellers transfer their rights to distribute and store their own stock in various countries within the EU to the online trading platform. The platform charges for shipping, and sellers have the option to use “Fulfillment by Amazon” (FBA), wherein the platform handles the shipping process to customers on behalf of the sellers. Sellers who choose FBA deliver their items to designated warehouses, and based on an algorithm, the platform determines the European region with the highest demand for a particular product and moves the goods to warehouses nearest to potential buyers.

The platform is responsible for the transportation of goods, and the document provided by the platform should be considered a transport document for VAT purposes. Hence, the platform should be treated as a carrier or forwarder, supported by the detailed information in the reports, which document the inter-warehouse movements and specify individual pieces of cargo.

One peculiarity of using the platform’s services is that the seller may not require additional documents, other than the reports, which the authorities deem insufficient to document the ICS.

In an intra-Community supply, the taxation occurs in the destination country where the goods are ultimately moved. Such supplies are VAT-exempt with the right to deduct and taxed at a 0% rate. This exemption avoids double taxation and upholds the principle of fiscal neutrality upon which the common VAT system is based.

The transfer of a taxpayer’s own goods from one country to another within the EU represents a specific type of intra-Community supply. The general principles for intra-Community supplies of goods should be applied “appropriately,” meaning some provisions are applied directly without modifications, while others are adjusted to suit the specific circumstances. Sometimes, certain rules may not be applicable due to their inherent nature.

In the case of an intra-Community supply of own goods, the person moving the goods assumes the roles of both the supplier and the purchaser, as there is no transfer of ownership rights over the goods.

As a result, certain general regulations related to commercial correspondence and payment for goods can be omitted when documenting the movement of own goods since there is no correspondence or payment involved within the same entity.

The regulations require relevant export and delivery documents to apply the 0% rate for intra-Community supplies. However, in the case of an intra-Community transfer of goods, it is not possible to present a document confirming the export and delivery of goods to a buyer in another member state. Instead, the taxpayer should have documentation proving that their own goods, subject to intra-Community supplies, were exported from the country and delivered to a warehouse in a different EU member state.

In the case of non-transactional transfers of own goods, the taxpayer is still obligated to issue an invoice. While the invoice should contain all the necessary elements, considering the nature of non-transactional deliveries under the ICS, it is important to note that the invoice alone does not prove the ICS or the movement of goods between countries. Therefore, it is irrelevant whether a taxpayer with a Polish VAT-EU number issues invoices to themselves or uses a VAT-EU number assigned in another country to assess the movement of goods.

Failure to issue VAT invoices for intra-Community transfers may, however, indicate non-compliance with obligations related to VAT invoice issuance.

In cases involving traditional CMR-documented deliveries, the authorities typically request confirmation of the circumstances described in the consignment note and investigate the release and loading of goods, sometimes even interviewing drivers involved in specific deliveries.

The VAT Act does not specify the form of the transport document. As long as the content demonstrates that goods were exported from Poland, taxpayers may present various document formats to confirm non-transactional movements of goods. Consequently, the credibility and completeness of the reports generated by the platform are often at the core of disputes in online trading cases.

Disputed online transactions are commonly documented through reports, which record sales transactions by the platform in the form of an Excel file. These reports are usually accompanied by explanations from the platform regarding their structure and the terms and conditions of the platform’s services in Europe.

The Excel-based waybill differs from the traditional CMR document used when the owner of the goods (buyer or seller) or a hired carrier/forwarder handles the transport. There is no universally recognized, traditional form for moving goods internationally governed by Incoterms standards since it depends on the owner’s decision.

When evaluating evidence, including the reports from the platform, the general principles of law (including tax law) require logical assessment based on life experience. Given the specific nature of global e-commerce using automated warehouses across multiple countries, the existing experience in examining bills of lading, where forwarders act solely as carriers, needs to be adapted.

Therefore, the same rules of proof used to assess the value of other consignment notes, particularly CMRs, should be applied to evaluate the content of the Excel-based waybill.

According to administrative courts, it is arbitrary for tax authorities to disregard the sufficiency of the platform’s reports as evidence of goods movement under the ICS. Such disregard violates the principles of objective truth and trust.

In a case represented by our law firm, the court overturned the decision of the tax authorities and concluded that the allegations of inadequate ICS documentation were incorrect.

Bernard Łukomski
attorney-at-law
tax advisor
phone +48 608 093 541