Evolution of the interpretation of the provisions on residency tax exemption and the annulment of a tax decision: Analysis of the problem and comments based on the judgment of the Supreme Administrative Court of 23 January 2020, ref. no. II FSK 2730/19

Abstract

This paper discusses the issue of residency tax exemption in the Polish Personal Income Tax Act. The key issue of the analysis is to assess the impact of a change in the interpretation of the criteria for eligibility for a tax exemption on the annulment of a tax decision if the decision was based on a restrictive interpretation of regulations, which was later clearly negated by the judicature of the administrative courts. The author contests the standpoint of the Supreme Administrative Court that a flagrant violation of the law occurs only when there is an obvious contradiction between the content of a provision and the content of a decision based on that legal provision.