Archive for: May, 2009

Tax law and business activity via Internet in Poland

May 28th, 2009, Tomasz Rychlicki

According to the latest judgment of the Voivodeship Administrative Court in Opole of 4 March 2009, case file I SA/Op 239/08:

When performing commercial transactions over the Internet in an organized and continuous manner, the taxpayer shall register such business and pay the taxes by virtue of performing such activity. Conducting a business with the use of internet networks is associated with the same tax obligations as operating business in the traditional manner, which includes, in particular the pursuit of tax revenue and expenditure accounts in such a way as to determine the income (loss), the tax base and amount of tax due for the fiscal/tax year.

Taxes for websites ads

May 21st, 2009, Tomasz Rychlicki

Polish citizen bought domain names under which she has established website where the company from United States placed some ads. The owner of the mentioned website receives payments from the US company via PayPal or bank account several times a year. She does not have any invoices or bills. She is not an entrepreneur nor she is providing any online advertising business. The Polish newspaper Rzeczpospolita published an article titled “Jaki PIT od wynajęcia internetowej witryny pod reklamy“, which loosely translates as “What tax for renting website for online advertising” with a question, how and where should such person pay taxes.

According to interpretations issued by the Tax Chamber in Poznań of 13 January 2009 (ILPB2/415-679/08-2/AJ) and the interpretation by the Tax Chamber in Bydgoszcz of 17 March 2008 (ITPB1/415-797/07/PS), the income which is derived from activities performed “in person” for the US company, should be taxed only in the Republic of Poland.

Advertising of pharmaceuticals, case II CSK 289/07

May 7th, 2009, Tomasz Rychlicki

This case is a little bit old but I think it’s really worth mentioning to P.T. readers. The Supreme Court of the Republic of Poland decided a case regarding misleading advertising of pharmacetical products. The Court in its judgment of 2 October 2007, case act signature II CSK 289/07 ruled that assessment whether advertising can be deemed as misleading should refer to the model of the average recipient of this kind of advertising – the consumer of advertised products or services.

In this case, it was the average consumer of pharmaceuticals, to which advertising newspapers and leaflets were directed. As the Supreme Court noted in its judgment of 3 December 2003, case act signature I CK 358/02, the model of the average consumer, who is reasonably well informed and reasonably observant and circumspect, is now used widely adopted in the Republic of Poland as it is in the European Union.

However, the model of an average consumer could not be defined and considered in isolation from the conditions of this specific case and the realities concerning recipients of specific products to which the advertising is directed. Therefore, one could not ignore the fact that such consumers are often very ill persons, often with reduced capacity of perception and limited ability of reasonable and critical evaluation, as well as they are often elderly, which is also a significant group of consumers of medicines. These are typically the person more susceptible to suggestion and less critical. These people are targeted by pharmaceutical advertising and, while assessing the possibility of confusion, the characteristics of this kind of audience should be taken into account as a model of the average consumer.