Poland: foreign companies to receive greater scrutiny

14/11/2001

The Polish government has acted to make good on a pre-election promise that it would investigate the transfer of profits abroad by foreign companies. Some firms have been accused of overcharging their Polish subsidiaries in order to bring down their profit figures and thus reduce the amount of tax they pay. Such activities, according to an estimate by the Finance Ministry, cost the country zl.5 billion ($365 million) a year in lost revenue.

To deal with the problem, the Ministry is setting up two special fiscal chambers to investigate and regulate the price setting, profit transfer and tax payment of foreign companies
.