How to write off debt in the Tax Office

The Tax Office may apply a wide range of reliefs for repayment of financial arrears – for example, it may postpone repayment, divide it into installments, or even completely cancel the debt. What conditions should be met and what should be done to be able to obtain debt cancellation at the Tax Office? If a person is unable to pay the debt, this is usually accompanied by extraordinary circumstances. In most cases, these circumstances are not dependent on the person concerned. It should be remembered that it is the taxpayer’s responsibility to collect all data necessary to confirm this difficult situation . If the taxpayer has a source of income, this does not exclude the possibility of debt cancellation. On the other hand, the ratio of current income to the amount of tax arrears is important – if the analysis of the debtor’s income shows that repayment is objectively impossible there is a possibility of cancellation. All data on current income and material status should be collected independently. A legal person or a sole proprietorship is required to declare the use of de minimis or public aid, and in addition, a declaration of assets or an up-to-date financial statement may be required to determine the company’s financial condition.

 

To apply for debt cancellation

To apply for debt

Submit the appropriate application. It must contain the applicant’s details, date and place of preparation of the letter and an indication of the Tax Office. Then justify your request accordingly. The choice of arguments is very important – their purpose is to show why you are unable to settle the tax arrears and why this is so important that it speaks in favor of the applicant. The cancellation of a debt involves the loss of part of the income by the State Treasury, so the taxpayer must show why he is unable to pay the tax, provide arguments for its cancellation and prove the legitimacy of his arguments . When it comes to a natural person, the whole life situation is taken into account: financial conditions, family situation, number of dependents, parents’ help, etc. Such a person should submit with the application at least a salary certificate, spouse’s income certificate, PIT declarations, and documents proving a difficult life situation. Article 67b of the Tax Ordinance shows that the Tax Office may grant reliefs in repayment of liabilities to persons conducting business activity if they do not constitute state aid or constitute de minimis aid, or state aid for the achievement of specific goals (e.g. employment, training, protection environment, restructuring liabilities). You can find help with restructuring here.

 

What if you refuse?

What if you refuse?

The Tax Office does not always agree with the taxpayer’s request. Quite often, as a result of the proceedings, the redemption request is refused. This decision can be appealed to the tax chamber, while the subsequent refusal remains legal. The next step would be to ask for debt relief again . Even if the person concerned is denied it does not mean that it is not possible to ask for a discount once again. This position is also emphasized by administrative courts – in the case of redemption of arrears the principle of res judicata does not apply. If, since the refusal decision, the taxpayer’s situation has deteriorated, he may resubmit an application for remission.

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