Active regret can help you avoid being fined if you violated tax laws. However, you must first confess to the tax office of making a mistake. Otherwise, entrepreneurs may face consequences appropriate to the offense or crime committed. So how do you write an active regret to avoid unpleasantness? We present a model of active regret, i.e. notification of a prohibited act.
What is active regret?
Both entrepreneurs and natural persons who do not conduct business activity have their obligations towards the tax office. In many cases, even minor omissions or omissions can have serious consequences. If, for example, you forgot to submit your tax return or pay VAT on time, you do not always have to pay the penalty specified in the regulations. Such a possibility is offered by active regret, i.e. informing the head of the tax office about committing a prohibited act .
Of course, notification of an offense is not enough. In order to be effective, it will also be necessary to fulfill tax obligations, e.g. paying the missing tax or submitting a tax return.
The institution of active grief in the relations between the entrepreneur and the tax office is regulated in the Fiscal Penal Code, which in Art. 16 § 1 provides that:
“The perpetrator who, after committing a prohibited act, notifies the prosecuting authority, disclosing the relevant circumstances of the act, in particular persons cooperating in its commission, is not subject to penalty.”
Active regret: what situations does it concern?
Active regret can be used in the event of committing a prohibited act, including a crime or a fiscal offense. In what situations can it be effective?
- failure to submit the tax return on time
- unreliable issuing of an invoice or proof of purchase
- incorrect bookkeeping
- failure to pay the tax on time (PIT, CIT, VAT)
- lowering the VAT rates
- unauthorized application of the VAT exemption
- extortion of customs duties
- tax understatement.
When will submitting active grief work?
However, it is worth noting that active grief will not always guarantee effective protection against punishment. As further indicated in the Fiscal Penal Code, the above provision will be ineffective if the taxpayer:
- he has already been summoned in connection with a prohibited act and the tax authorities have already documented the commission of the offense;
- is undergoing control proceedings;
- organized a group or induced another person to commit a tax offense.
In addition, one should also remember about the necessity to pay the fee together with interest, because the institution of active grief only protects against penalties, not obligations.
So how do you make active regret effective? In any case, it is a good idea to submit it as soon as possible after finding out about the situation. As soon as possible – without the request of the tax office – you should also fulfill the obligation, and if you need to settle the tax, do so taking into account interest.
However, an attorney should not be appointed to submit an active regret. If it is delivered to the tax office, it must be done in person.
How and when should I present my active regret?
The Code does not specify the time limit within which the taxpayer should admit to the committed misstatement. However, if the entrepreneur counts on a positive consideration of the application, he should submit it before the tax authority documents the commission of a fiscal crime or offense. This should also be done before law enforcement commences, for example, checks, inspections or searches.
The notification may be submitted in writing or orally for the record at the competent tax office. It can also be done via the Internet, using the appropriate option in the e-Tax Office. To do this, log in to the website and authorize the activity.
The law enforcement agency may then recognize an active regret. In this case, the head of the customs and tax office refrains from imposing the penalty, or may also indicate new deadlines for settling liabilities. If the active grief is unsuccessful, the proceedings will continue.
Active regret – how to write?
What should active regret look like? The formula has not been clearly defined in the regulations. It should also be remembered that it can be submitted in person to the tax office orally. How to write an active regret? It should be made by yourself, containing the following data:
- an active repentant;
- the addressee, which is the Head of the tax office;
- the nature of the act committed and its circumstances;
- persons who were related to the committed prohibited act;
- information whether the committed act has been corrected (or in what time it will be repaired)
Additionally, the following should be attached to the notification:
- confirmation of payment of the required public law receivable – if the active grief concerns failure to pay the tax on time,
- items subject to the obligation that you have not fulfilled – here it is about tax declarations and tax returns that you did not submit within the assigned deadline.
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