The Act of May 23, 2024 amending the act on the exchange of tax information with other countries and certain other acts was submitted to the President for signature. It seems almost certain that the provisions implementing Directive (EU) 2021/514 of 22 March 2021 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (“DAC7”) will enter into force from July 1, 2024. The provisions governing information obligations regarding tax schemes (MDR) will also be amended.
Pursuant to the provisions of the Tax Ordinance amended by the above-mentioned Act of May 23, 2024, the promoter and supporter providing information on a tax scheme will be obliged to inform in writing the natural person, whom the information on tax scheme relates to, about:
- collecting, processing and transferring information in accordance with the provisions of the chapter - Information on tax schemes and
- the right of that natural person to obtain from the data controller information which said natural person has the right to obtain from the data controller, in time sufficient to exercise said natural person’s personal data protection rights, before the information is disclosed.
At the same time, the promoter and supporter providing information on a tax scheme are to immediately notify in writing the natural person whom the information on a tax scheme relates to, about the likelihood of a breach of the security of said natural person’s personal data collected and processed for the purposes of automatic exchange of information, in case of a likelihood that such breach will negatively impact protection of that natural person's personal data.
The above changes require verification of internal procedures to prevent non-compliance with the obligation to provide information on tax schemes (MDR) implemented in organisations. In case a given organisation has not yet implemented an MDR procedure, the above changes should be an additional argument (apart from the imperative to appropriately execute the process of identification and reporting of tax schemes and exercising due diligence) in favor of its implementation.
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