Poland's Proposed GAAR

Poland is again considering a new general anti-avoidance rule (GAAR). A previous GAAR was ruled unconstitutional in 2004, and a draft GAAR had been developed in 2014, but was not implemented.

Arrangements Subject to the GAAR

The proposed GAAR will apply if a taxpayer uses artificial legal actions with the primary purpose of obtaining tax benefits not in line with the object and purpose of the law. The GAAR will apply specifically to tax planning involving:

• The use of hybrid instruments;
• T…