Taxation of property given into dependent possession by an entity subject to a property tax exemption

Edyta Jóźwiak

doi:10.31648/aspal.7072

Published: 2022-03-021

Vol. 21 No. 1 (2022)

Taxation of property given into dependent possession by an entity subject to a property tax exemption

Edyta Jóźwiak

Acta Scientiarum Polonorum Administratio Locorum

Section: Articles

https://doi.org/10.31648/aspal.7072

Abstract

Motives: Does the real property owned by an entity subject to the real property tax exemption and placed in the dependent possession of another entity give rise to an obligation to pay the tax in the amount payable by the entrepreneur?
Aim: In a situation where the property is in the possession of the entrepreneur, he is obliged to pay the highest amount of tax – in 2021, the rate of this tax is PLN 24, PLN 84 per m2. However, the Act on Local and Duties and Fees provides for certain exceptions for entities which, due to their activities, benefit from a tax exemption, because of which no funds are credited to the budget of a local government unit. Therefore, it can be concluded that the tax authorities want the largest possible number of properties to be taxed in the highest amount. Their task is facilitated by the fact that the provisions of tax law are not clear as to the definition of “seizure of real estate for conducting business activity”, which allows the tax authorities to freely decide what such activity is and what is not. Recently, an opinion has developed that the mere transfer of real estate into dependent possession based on a civil law contract justifies the statement that the entity conducts business activity. Therefore, the article in question attempts to answer the question whether, and if so, in what amount, the entity that benefits from the tax exemption is obliged to pay tax if it gives the property into dependent possession, and whether it is possible to use tax optimization and make the division of real estate for tax purposes?
Results: The interpretation of the provisions of a.l.t. applied by the tax authorities to date, which boils down to the assumption that the mere fact of leasing real estate proves that business activity is being conducted and prejudges the loss of acquired right to tax exemption, is not justified in any way. In the provisions of the a.l.t., the legislator clearly indicates that the subjective use of the real property for purposes that entitle the entity to use the tax exemption is of significance. At the same time, when the tax exemption does not extend to part of the property, it is possible to subdivide it for tax optimisation purposes.

Keywords:

tax law, property tax, business activity, principles of tax law, dependent possession, taxation, tax exemptions, tax preferences, tax rates

Most read articles by the same author(s)

Edyta Jóźwiak, Tax subsidies for entrepreneurs in case of property tax , Acta Scientiarum Polonorum Administratio Locorum: Vol. 19 No. 3 (2020)
Edyta Jóźwiak, Legal and tax aspects of reprivatization , Acta Scientiarum Polonorum Administratio Locorum: Vol. 18 No. 3 (2019)

Download files

PDF

Citation rules

Jóźwiak, E. (2022). Taxation of property given into dependent possession by an entity subject to a property tax exemption. Acta Scientiarum Polonorum Administratio Locorum, 21(1), 115–123. https://doi.org/10.31648/aspal.7072

Cited by / Share

Licence

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

References

Biedacha, A. Wartość początkowa budowli [Initial value of the building], ABC, lex, (date of access: 23.07.2021).
Google Scholar

Duch - Chojna E. (1993). Kształtowanie podstawy opodatkowania podatkiem od nieruchomości, In: „Samorząd Terytorialny” [Shaping the basis of taxation of real estate tax, [in:]"Local Government"], NO 3.
Google Scholar

Dowgier, R. Etel, L. Liszewski, G. Pahl, B. (2020). Podatki i opłaty lokalne. Komentarz [Local taxes and duties. Comment], Warszawa, art. 7.
Google Scholar

Etel L., (2013). Podatek od nieruchomości. Komentarz [Property tax. Comment] Warszawa, art. 7, Lex.
Google Scholar

Etel L., (1998). Reforma opodatkowanie nieruchomości w Polsce [Real estate taxation reform in Poland], Białystok, p. 13.
Google Scholar

Jaszczyński, M. (2017) Funkcje podatków w gospodarce, Zeszyty Naukowe PWSZ w Płocku. Nauki Ekonomiczne [Functions of taxes in the economy, Scientific Papers of PWSZ in Plock. Economic Sciences] t. 25/2017, p. 215 –230.
Google Scholar

Jóźwiak, E. (2020). Ulgi podatkowe dla przedsiębiorców w przypadku podatku od nieruchomości [Tax reliefs for entrepreneurs in the case of property tax] Acta Scientiarum Polonorum Administratio Locorum, 19 (3), 161–171. https://doi.org/10.31648/aspal.5698.
Crossref
Google Scholar

Kosikowski, C. (2007) Podatki, Problemy władzy publicznej i podatników [Taxation, Problems of public authorities and taxpayers], LexisNexis, Warszawa, p. 129 – 131.
Google Scholar

Pahl, B. (2012). Glosa do wyroku Naczelnego Sądu Administracyjnego z dnia 24 maja 2012 r., II FSK 2266/10 [Gloss to the judgment of the Supreme Administrative Court of 24 May 2012, II FSK 2266/10], lex.
Google Scholar

Pietrasiewicz, W. (2017) Część IV Podatki Majątkowe, In H. Litwińczuk (Eds.)Prawo podatkowe przedsiębiorców, [Part IV Property Taxes, In. H. Litwińczuk Tax law of entrepreneurs], Warszawa.
Google Scholar

Smoleń, P. Świstak, M. Przekazanie przez uczelnię nieruchomości w posiadanie zależne a stosowanie zwolnienia podatkowego. Glosa do wyroku WSA z dnia 20 listopada 2019 r., I SA/Go 668/19 [Transfer of real estate by the university into dependent possession and the application of tax exemption. Gloss to the judgment of the 19th Of the 20Th Of the Polish Taxation And Administration of 20 November 2019, I SA/Go 668/19] St.Prawn.KUL 2021, no 1.
Google Scholar

Ustawa z dnia 10 kwietnia 2003 r. o szczególnych zasadach przygotowania i realizacji inwestycji w zakresie dróg publicznych [Act of 10 April 2003 on special principles of preparing and implementing investments in the field of public roads] Dz. U. 2020 r. vol. 1363 (Poland).
Google Scholar

Ustawa z dnia 12 stycznia 1991 r. o podatkach i opłatach lokalnych [Act of 12 January 1991 Local Taxes and Duties Act] Dz.U.2019.1170 (Poland).
Google Scholar

Ustawa z dnia 23 kwietnia 1964 r. Kodeks cywilny [Act of 23 April 1964 Civil Code], Dz.U.2020.1740 (Poland).
Google Scholar

Ustawa z dnia 27 sierpnia 2009 r. o finansach publicznych [Act of 27 August 2009 on public finance] Dz.U.2021.305 (Poland).
Google Scholar

Ustawa z dnia 6 marca 2018 r. Prawo przedsiębiorców [Act of 6 March 2018 Entrepreneur Law] Dz.U.2021.162 (Poland).
Google Scholar

Obwieszczenie Ministra Finansów z dnia 23 lipca 2020 r. w sprawie górnych granic stawek kwotowych podatków i opłat lokalnych na rok 2021 [Notice of the Minister of Finance of 23 July 2020 on upper limits of specific rates of taxes and local fees for the year 2021] M.P. 2020, item 673).
Google Scholar

Obwieszczenie Ministra Finansów, Funduszy i Polityki Regionalnego z dnia 22 lipca 2021 r. w sprawie górnych granic stawek kwotowych podatków i opłat lokalnych na rok 2022 [Notice of the Minister for Finance, Funds and Regional Policy of 22 July 2021 on upper limits of specific rates of taxes and local charges for 2022] M.P 2021, item 724).
Google Scholar

Judgment of the Court of Appeal in Katowice of 10 January 2020, III AUa 424/19, LEX no. 2825691.
Google Scholar

Judgment of the Court of Appeal in Lublin of 29 May 2019. III AUa 550/18.
Google Scholar

Judgment of the Court of Appeal in Poznan of 15 December 2010. III SA/Po 449/10.
Google Scholar

Judgment of the Court of Appeal in Rzeszów of 19 November 2013. I SA/Rz 946/14.
Google Scholar

Judgment of the Court of Justice of 24 February 2021. SK 39/19.
Google Scholar

Judgment of the Provincial Administrative Court in Gorzów Wielkopolski of 20 November 2019. I SA/Go 668/19.
Google Scholar

Judgment of the Provincial Administrative Court in Warsaw of 21 August 2015, III SA/Wa 3525/14.
Google Scholar

Judgment of the Provincial Administrative Court in Wrocław of 13 February 2008, I SA/Wr 1087/07, LEX No. 469779.
Google Scholar

Judgment of the Provincial Administrative Court in Wrocław of 3 October 2017, I SA/Wr 768/17.
Google Scholar

Judgment of the Regional Administrative Court in Szczecin of 6 October 2010 I SA/Sz 513/10. Judgment of 24 May 2012, II FSK 2266/10, LEX No 1162586.
Google Scholar

Judgment of the Supreme Administrative Court of 14 September 2018. II FSK 2514/16.
Google Scholar

Judgment of the Supreme Administrative Court of 21 December 2016. II FSK 355/15, lex no. 2230783.
Google Scholar

Judgment of the Supreme Administrative Court of 24 May 2012, II FSK 2266/10, LEX nr 1162586.
Google Scholar

Judgment of the Supreme Administrative Court of 24 May 2012, ref. II FSK 2266/10.
Google Scholar

Resolution of the composition of five judges of the Supreme Administrative Court in Warsaw of 18 December 1995, VI SA 19/95, ONSA 1996, together with the vote of L. Etel to the appointed resolution, Prz. Pod. 1996, No. 5.
Google Scholar